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Strategic Management

14.SWOT analysis of Wal-Mart Stores:


(Planning and managing public relations campaigns, 2000)Wal-Mart can
do strategic planning by using SWOT analysis, which would
helpcompany to do pre-crisis planning by evaluating its strength,
weakness, opportunityand threat. SWOT analysis can be done based on
the objective of Wal-Mart’s projector its venture. It could help business
understand its ‘favorable’ and ‘unfavorable’ byevaluating company’s
internal factors- strengths and weaknesses and external factors-
opportunities and threats. Based on the outcome, grey-area in the
business can berectified and area of improvement can be highlighted and
corrected.Wal-Mart’s
Strength
: All the advantage that business has above its competitor.

Good market position- top in retailing.

Great range of brands- Host of choices for customer.

Aggressive marketing and expansion plan- Capturing global market.

Excellent supply chain management- Best in the industry

Good market in Brazil, China & Mexico- Doing better than
local/homecompanies.Wal-Mart’s

Weakness: its intrinsic characteristic that is its disadvantage.



Legal issue- Lots of labor, supplier and health and safety related issues.

Exit from South Korea and Germany- Due to political and adverse
strategy planning.

Closing down of Moscow Wal-Mart office- According to Doug
McMillon,head of international business it could not find potential
partner, thus wasforced to close down its operation in December,
2010.Company’s
Opportunities: External condition that are favorable for Wal-Mart.

Own-brand product- Private product has good demand & high margin

Capturing US healthcare and financial market- Apart from Retail it has
goodfuture in this by catering to more to same customer.

Increase in online sales and number of stores opening in different
locations.

Growth opportunity in Brazil, China & India, as these big countries will
have big sale for Wal-Mart.It’s

Threat: elements that are its obstacles in achieving objective



Stiff competition from local and Home companies, Wal-Mart’s UK
subsidiary,ASDA is #2, after Tesco PLC.

Opposition from different groups/communities- Many companies and
smalltime retailer are opposing its entry in their country. In India, there
was strictopposition by retailers to stop Wal-Mart from entering.
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Strategic Management
SWOT analysis can thus help Wal-Mart in planning. It can also help
business inmatching its strengths with the opportunities and converting
its weakness or threat tostrength and opportunities.
SWOT Analysis Diagram
15.7S model for Wal-Mart
(Strategy Safari FT Prentice Hall, 2002)The Mckinsey 7S framework
would help Wal-Mart in its operational activities byhelping it achieve
organizational goal. It has seven internal aspects which are to bealigned
and reinforced to improve performance, manage changes, and
synchronizedepartment and its responsibility. 7S model is very
beneficial in identify gaps andinconsistencies in business.
5.7S model for Wal-Mart
(Strategy Safari FT Prentice Hall, 2002)The Mckinsey 7S framework
would help Wal-Mart in its operational activities byhelping it achieve
organizational goal. It has seven internal aspects which are to bealigned
and reinforced to improve performance, manage changes, and
synchronizedepartment and its responsibility. 7S model is very
beneficial in identify gaps andinconsistencies in business.
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Strategic Management
7S has two elements:

‘Hard-elements’ which has three internal aspects which are easier to


define andidentify. These aspects can be influenced by management.

1.Strategy- Wal-Mart needs to plan strategy to get an edge


in competition andgain competitive advantage. Determine its
objective, confront competition and deal with customer demand. Its
strategy has to focuses on market and competition.

2. Structure- The hierarchy of Wal-Mart should be clear and


easily associable to avoid any lapses. Coordination between
departments should be smooth and align to attain common goal.

3. System- Job-responsibility should be concise and should get


the work done effectively across the board. Controlling, monitoring
and internal rules should be good and effective. ‘

Soft element’ has four internal aspects and is hard to describe, less
tangible in nature and more culturally influenced.

1. Shared value- Wal-Mart should take care of its business


culture and work ethic. This aspect is centre to development of all the
other six aspects or super-ordinate goal. Team culture, work culture
should be strengthened and should achieve high results.

2. Skills- Individual skill and the job profile should match to the
tee, skill gaps should be curtailed and regular feedback should be given
to enhance performance.

3. Style – Business like Wal-Mart should frequently identify and


develop the management and leadership style adopted in operation. It
should be effective and should encourage team-work.

4. Staff- Wal-Mart employee and their assigned job


responsibilities should be competent. Staffing gaps should be taken
care regularly for smooth functioning of operational. These entire
elements are interdependent and a change in one aspect can influence
other as well. 7S model can help Wal-Mart in organizational change,
resolve ineffectiveness in business and sustain competition.