Walmart-Case Analysis Assignment

Walmart-Case Analysis Assignment Words: 4611

INTRODUCTION Wal-Mart Stores, Inc. is an American public corporation that runs a chain of large, discount department stores. It is world’s largest public corporation by revenue and is founded by Sam Walton in 1962. It is the largest private employer in the world and the fourth largest utility or commercial employer. Other key facts include: •Employs 1. 8 million in over 6,700 stores in 14 countries •Serves 175 million customers per week generating an average of $6. billion in weekly sales Wal-Mart is the largest grocery retailer in the United States, with an estimated 20% of the retail grocery and consumables business, as well as the largest toy seller in the U. S. It also owns and operates the North American Company, Sam’s Club. Wal-Mart’s business segments are: Wal-Mart Stores, Sam’s Club and Wal-Mart International. Wal-Mart is a discount store and provides cost leadership strategy to public. According to the Fortune 500 index of the wealthiest and most powerful corporations in the world, Wal-Mart holds the number one spot, ranked by its total sales.

CASE OBJECTIVE This case objective is to study Wal-Mart’s history, external environment, internal environment, perform a SWOT analysis, analyze its business strategy, performance measures, and to provide strategic recommendations. Moreover, Wal-Mart’s “glory days are over” and its stock is “dead money”. So, what had worked in the past for Wal-Mart was no longer sustainable in the current competitive environment. The president Lee Scott wondered whether he should somehow adjust Wal-Mart’s course or to change efforts he had started over the past few years would begin to have a positive effect.

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These statements and facts will be addressed and discussed in the course of the paper and presentation. WAL-MART’S BACKGROUND 1962: Sam Walton founds the first Wal-Mart in Rogers, Arkansas Before opening Wal-Mart, Sam Walton traveled the country studying everything he could about discount retailing. He became convinced American consumers wanted a new type of store. Trusting his vision, Sam and his wife Helen put up 95% of the money for the first Wal-Mart store in Rogers, Arkansas. ? 1972: Wal-Mart goes public Discounters such as Kmart quickly expanded in the 1960s; while Sam only had enough money to build 15 Wal-Mart stores.

In 1972, Wal-Mart stock was offered for the first time on the New York Stock Exchange. With this infusion of capital, the company grew to 276 stores in 11 states by the end of the decade. Other important dates are: •1979: The first company to reach $1 billion in sales •1983: Opened the first Sam’s Club in Midwest City, Oklahoma •1988: First supercenter in Washington, Missouri •2002: Ranked #1 on the Fortune 500 listing Recent History Wal-Mart’s growth soared in recent years, and since 2006, the company has added nearly one new store every day.

The total retail store presence has reached 6,782 units worldwide as of February 8, 2007 due to its rapid expansion plan. As Wal-Mart’s presence continued to grow, so did its sales, to a record $345 billion in the fiscal year ended January 31, 2007. The president of Wal-Mart is currently Lee Scott. IMPORTANT PERSONALITIES AND LEADERS Wal-Mart is comprised of very important leaders. To start, here is the history of leadership succession in Wal-Mart as depicted in Exhibit 6 of case 28: History of Leadership Succession at Wal-Mart YearPresidentCEOChairman 1962Sam WaltonSam WaltonSam Walton 1984David GlassSam WaltonSam Walton 988David GlassDavid GlassSam Walton 1992David GlassDavid GlassRob Walton 2000H. Lee ScottH. Lee ScottRob Walton Decision Makers “To review the Company’s ongoing performance, focus on initiatives to drive sales and customer service, and address broader issues,” is the job for the twenty-five senior Wal-Mart officers that meet via weekly videoconferences. The most powerful amongst them is S. Robson (Rob) Walton. There are eight senior officers that are supported and monitored by the board of directors. They include: •Rob Walton, Chairmen of the Board of Directors for Wal-Mart Stores Inc. •Lee Scott, CEO and President Mike Duke, Vice Chairperson of International Operations •John Menzer, Vice Chairperson of the responsibility of the U. S •Eduardo Castro-Wright, Executive Vice President and President and CEO of the Wal-Mart Stores Division •Doug McMillon, Executive Vice President and President and CEO for SAM’S CLUB •John Flemming, Executive Vice President and Chief Merchandising Officer •Stephen Quinn, Executive Vice President and Chief Marketing Officer Board of Directors Wal-Mart’s board of directors is comprised of fourteen members: Aida M. Alvarez, James W. Breyer, M. Michele Burns, James Cash, Roger C. Corbett, Douglas N.

Daft, David D. Glass, Roland A. Hernandez, Allen I. Questrom, H. Lee Scott, Jr. , Jack C. Shewmaker, Jim C. Walton, S. Robson Walton, Christopher J. Williams, and Linda S. Wolf. Shareholders Wal-Mart’s insiders and beneficial owners hold 42%, while institutional investors and mutual funds hold 37%. STRATEGIC PROFILE Mission “To save people money so they can live better. ” Vision and Slogan To be the only shopping choice of consumers and offer many departments for their needs, and to provide “EVERYDAY LOW PRICES! ” Wal-Mart also has the Five Pillars of Strategy: 1. “Broadening our appeal to our customers” . “Making Wal-Mart an even better place to work” 3. “Improving operations and efficiencies” 4. “Driving global growth”, and 5. “Contributing to our communities”. ANALYSIS OF EXTERNAL ENVIRONMENT Overall, Wal-Mart’s external environment has a large effect on the success or failure of the company. There are many elements that comprise it and must be handled accordingly. There has been a shift in the balance of power that Wal-Mart has held for many years. In 2006, the threat of competitors such as Target and Kroger has lead to the smallest percentage increase in sales for new stores.

Wal-Mart’s growth has been compromised. Its competitors are growing two to five times faster. The issue of competitors is only one of the threats Wal-Mart faces. Others include the many problems like lawsuits, environmentalists, political entities, and employee-related issues. The external environment is analyzed by looking at the general, industry, and competitive elements. 1) GENERAL The general environment of Wal-Mart includes the six dimensions of society. Under each dimension, Wal-Mart cannot control the factors influencing the general environment.

Wal-Mart must understand each aspect and plan their strategy around it. They include: 1. Economic Given the current economic condition, rural areas who are hit the hardest are of special concern to Wal-Mart. There are many stores located in these areas that have 50,000 people or less. However, the power of Wal-Mart is their cost leadership strategy. For those people that are hit by the recession, they have a high tendency to save money but need necessities. Wal-Mart can accommodate the necessities at a low-price. The climb in oil prices also hurts businesses and consumers.

The war in Iraq countries is another problem that Wal-Mart faces in terms of international expansion and government relationships. The entrance into a foreign market is difficult under this situation. 2. Sociocultural Wal-Mart’s target market is broad. They want to appeal to all customers of every income bracket. Initially it was for the low to moderate income families, but have grown to include the higher income brackets. However, there is a problem with this strategy. Simply stated, you cannot please everyone. If one group is more marketed, the other will suffer. This is a problem that needs to be addressed by Wal-Mart. . Global The 1990s’ trend towards globalization is still in its growth phase for industries around the world. There is greater access to foreign markets due to the reduction of trade barriers, signing of bilateral and multilateral free trade agreements, and an increase of technology. For Wal-Mart to be successful in a global market, they must understand the best practices in each country they are located. The first globalization efforts were into Mexico, Brazil, and Argentina. They later branched into Europe and Asia. There are some current trends in globalization for retail companies.

Price sensitivity, expansion from saturated major cities into rural areas, and the development of shopping centers that have every department a consumer would want and need. 4. Technological The retail industry’s next biggest breakthrough is radio frequency identification (RFID). This technology helps retailers register and track movement of goods from the warehouse to the store shelf. It can even track shoplifting. Electronic commerce is a very prominent element of retail technology. There are improvements in broadband and an increase of internet access in most developing nations.

Many consumers rely on the internet for their lifestyle. Wal-Mart has always been a leader in technology. They have optimized and maximized their operational efficiency. A lot of investments have been made into technology that has benefited their company. Wal-Mart has their own private satellite network and manages their own logistics through warehouses and distribution centers. Along with the RFID, Wal-Mart also has an extended point-of-sale (ePOS) that provide transaction terminals with solutions for switching between checkout and customer service.

Lastly, they have intelligent inventory management (IIM) which enables real-time visibility into inventories and throughout the supply chain. This facilitates the speed of decisions. 5. Political/Legal Wal-Mart is the “poster company” for many political issues. Trades, health care, the environment, discrimination, and worker pay are examples of the many issues. Other concerns include the breaking of antitrust laws. Wal-Mart is seen to be the micromanager in the industry market. They coordinate actions of many firms above the market.

Environmentalists have large issues with Wal-Mart and applying pressure. Given that it’s one of the largest companies, the effort to “go green” is quite prominent. Therefore, in order to promote good environmental practices, Lee Scott is vamping Wal-Mart’s environmental strategy with the help of Conservation International. The improvements include increasing efficiency of their vehicle fleet by 25 percent within three years and doubling in ten years, reducing energy use in stores by 30 percent and solid wastes by 25 percent in a three year period.

Lastly, Lee wants to invest $500 million annually in environmental technologies. Actions by local, state, and federal officials in the United States have been initiated in relation to Wal-Mart’s handling of hazardous waste. Political leaders are disgruntled and making statements about Wal-Mart’s “sub-standard wages and health care benefits. ” Lee Scott had pledged to increase wages by 6% in a third of its stores; however, critics are not satisfied because the funds will be offset by pay caps. Several cities erected legal obstacles to the location of Wal-Mart stores in specific areas.

Governments in Inglewood, California, Cedar Mill, Oregon, and Vancouver have rejected Wal-Mat expansion plans. Lawsuits have also erupted which greatly affect Wal-Mart’s reputation. One example of a class-action lawsuit is Dukes v. Wal-Mart Stores where there was a pattern and practice of discrimination against female employees. It was stated they were treated unfairly when it came to promotions, pay, training, and job assignments. 6. Demographic The estimate of those aged 65 and older is significantly increasing over the years. Americans are getting older.

Along with age, there is an increase of diversity. There are many ethnic groups in the workforce, including Wal-Mart. Sensitivity and attention to avoiding discrimination should be followed. Overall, people are living longer and people are becoming increasingly proficient with technology. There is opportunity for businesses to embrace this; however; there are always problems associated with age and technology. The concept of change is apparent. Sam Walton had stated, “Everything around you is always changing. To succeed, stay out in front of that change. ” 2) INDUSTRY

The industry directly affects the operations and acceptance of Wal-Mart. It can be expressed by “Porter’s 5 Forces Model”: 1. Threat of new entrants (Low to Moderate) •Barriers to entry oWal-Mart has economies of scale which allows them to reduce price yet still retain market share, a new entrant would have a very large disadvantage •Product differentiation oThe array of products are so vast because they cover so many different departments, a new entrant would have to drop their prices to compete therefore reducing their profit margins •Capital requirements Cost of entry to develop stores and distribution channels is extremely high oCost-leadership is not easily obtainable oA lot of advertising is required especially to incur churning •Switching costs oThere are none •Access to distribution channels oWal-Mart has extremely high access where new entrants would have to develop relationships that have not already been made with Wal-Mart and the other major competitors 2. Power of suppliers (Low) •Power in the hands of Wal-Mart since there are many small suppliers and many suitable substitutes are readily available oThere are no switching costs Over 61,000 suppliers in the Unites States alone and in more than 70 countries oLots of leverage when it comes to delivery schedules, inventory levels, and product specifications oCan learn practices and education on control and efficiency (creates power in Wal-Mart’s court) •Wal-Mart does not allow suppliers to dictate the relationship, they are either in and accept Wal-Mart’s conditions or they are out oHowever, they are abusive to their suppliers (seek out the lowest possible price) o(In terms of the future), Suppliers may also become involved in their own product sales through the power of the internet instead of relying on retailers for narrow margins 3. Power of buyers (Moderate) •Wal-Mart exists for its customers and they favour them over their suppliers •Caters to more than 175 million customers per week •Low income clients account for 54 percent, mid-range clients for 20 percent, and high income clients for the remaining 26 percent •Negative press has affected Wal-Mart in a negative way because they are losing their customers which directly correlates with their market share •Since there are no switching costs, this allows for moderate power as well as the internet commerce expansion 4. Product substitutes (Moderate) Many competitors that have exceeded in growth over Wal-Mart (there are more than one discount retailer providing service and departments similar to that of Wal-Mart) •Wal-Mart’s core competencies that include its extremely efficient supply and distribution methods have kept a leading edge on their competitors 5. Intensity of rivalry (Moderate) •Competitors have differentiated themselves through their choice of product lines •Wal-Mart is harmed by “category killers” such as those retained through Best Buy, Staples, Home Depot, and Toys “R” Us to name a few •Their main competitors, Target, Costco, and Kroger are experiencing higher growth rates 3) COMPETITORS

The overall competitive environment for Wal-Mart includes a few different factors. First, there are sales competitions from the other discount retailers in their industry that also operate on an international stage including e-commerce. Second, retail site location is a problem because every discount store wants the high traffic space. Lastly, the departments of Wal-Mart are in constant competition with large discount stores that specialize in that area. In terms of relative market leadership to its competitors, Wal-Mart is the number one retailer in 77 of the 100 largest general merchandise markets in America. Its financial ratios are mid-range when benchmarked with its competitors.

Target has higher margins than Wal-Mart’s 5. 87 percent operating and 3. 23 percent net margin. A factor that leads to a lower margin is the grocery department because of its low margin profits. ? Therefore, the breakdown of Wal-Mart’s major competitors is: Target •1,318 stores and 182 SuperTarget stores in 47 states •Operates an online business (target. com) •”An upscale discounter that provides high-quality, on –trend merchandise at attractive prices in clean, spacious, and guest-friendly stores” •Continual growth in revenue and profits Costco •510 warehouses (140,000 square feet each) and operates in 38 states and six foreign countries •Offers 3 kinds of memberships Around 4,000 products (10-15 times fewer than most competitors) sold in high volume •High inventory turnover and low costs because of purchasing discounts Kroger •2,468 supermarket and multi-department stores •Subsidiaries include Ralphs, Fred Meyer, Food 4 Less, Dillons, and QFC Other general discount competitors •Sears Holdings (Sears and K-Mart) are domestic competitors •International competitors include Tesco of Britain and Carrefour of France •Carrefour is the second largest retailer in the world following Wal-Mart •Emphasis on hypermarkets like supercenters •An online competitor would be amazon. com due to their high number of SKU’s and products as well as convenience Niche competitors (Department level) Safeway, Best Buy, Circuit City, Home Depot, Ace Hardware, Lowe’s, Kohl’s, and more •Wal-Mart has developed relationships with their suppliers in order to compete with the department level competitors Moreover, Wal-Mart leads the industry and sector in market cap, employees, revenue, EBITDA, net income, and earnings per share. ? ANALYSIS OF INTERNAL ENVIRONMENT 1. RESOURCES Wal-Mart’s resources are categorized as tangible and intangible. Therefore, they can be summarized as the following: Tangible •Financial – As a well established organization, their borrowing capacity is high. •Organizational – Executives and top associates comprise the organizational component of Wal-Mart. The structure of Wal-Mart is also normally within a regional basis where they are then divided into departments. The departmental managers are responsible for the overview of their own staff. •Physical – Buildings in rural areas.

The logistics make selling their products in an efficient manner that includes shipping and delivery from suppliers. The locations make these logistics easily available. •Technological – Retail Link: Wal-Mart requires that all suppliers use it. Along with electronic data interchange, suppliers receive purchase order information and supply invoices electronically. (Lowers expenses, increases productivity). Texlon Barcode System – tracks inventory levels, product-sold history, predicts future needs. Intangible •Human Resources – 1. 8 million associates, the final link in the value chain. •Innovation – They have begun to employ an RFID (Radio frequency Identification) -based system to replace the barcode system.

Constantly coming up with new ideas to provide customers with the best possible goods at the lowest possible price. The company innovates as well as educates. Their intellectual property is of high importance to Wal-Mart’s innovations. •Reputation – To customers, Wal-Mart’s Brand is very recognizable and therefore high because they have a “for-the customer” attitude. However, as Wal-Mart is not known for being an employer of choice to the community due to their mistreatment of employees, people are beginning to boycott the stores based on their ethics. Morale also has been declining over the years which lead workers to be less polite and in turn, customers less satisfied with the service received. 2) CAPABILITIES

Wal-Mart’s capabilities are developed into specific functional areas that they specialize in two specific areas that include: •Distribution – effective use of logistics management techniques. Wal-Mart uses them effectively and efficiently to compete against its rivals. •Management Information systems – effective and efficient control of inventories through point of purchase data collection methods. ? 3) CORE COMPETENCIES Wal-Mart has three core competencies: 1. Low cost procurement 2. Leading-edge information systems 3. “Rocket Science” Logistics The “Four Criteria of Sustainable Competitive Advantage” are all apart of Wal-Mart’s competitive advantage: 1. Valuable •Wal-Mart has the ability to diminish threats and exploit their own opportunities 2. Rare The volume and inventory-turnover velocity propel Wal-Mart in the retail industry because it is a main core competency that they practice and is not possessed by many other businesses in the industry 3. Costly to imitate 4. Non-substitutable By succeeding in all four criteria, Wal-Mart can expect sustainable competitive advantage and above average returns. A complement in achieving and retaining this competitive advantage would be a global mind-set because Wal-Mart will not depend on a single source country for their returns. 4) VALUE CHAIN ANALYSIS Wal-Mart’s value chain analysis is used to identify and evaluate the competitive potential of resources and capabilities.

Overall, Wal-Mart has the knowledge of which activities create value and those that do not. They strategically do away with the ones that hamper their growth. Moreover, the value chain includes primary and secondary activities: Primary Activities •Inbound Logistics – Inventory Control used to receive, store, and disseminate product •Operations – Conversion of inputs into final product form •Outbound Logistics – Collecting, storing and physically distributing the final product to the customer •Marketing and Sales – Provide means by which customers can purchase products and to induce them to do so, and advertising and promotional campaigns •Service – Enhancement of product’s value, and employees Support Activities Procurement – Purchasing the product (includes raw material resources) •Technological Development – Improvement of processes used to maintain product or service •Human Resource Management – Recruiting, hiring, training, developing and compensating employees •Firm Infrastructure – General management, planning, finance, accounting, legal support, and governmental relations, required to support the entire value chain, and helps to identify external opportunities and threats, identify resources and capabilities, and support core competencies SWOT STRENGTHS •Efficient supply chain management and relationships with its suppliers •Cost-effective technology and logistics •Targeted marketing •Service innovation and technology •Growth through adaptability •Least cost of packaging •Strong penetration strategies Infrastructure (financial strength) •Optimize the weaknesses of competitors •Continual growth in departments offered (diversification) WEAKNESSES •Poor public image •Employee relations •Late entrant in the international market •Unable to adapt to different countries •Non-unionized and very strict labour laws •Unable to handle the media •High profile law suits •Low penetration in European Union OPPORTUNITIES •Many countries are still potential markets (ability to continue expansion and dominance within the industry) •Unorganized retail in certain countries •Globalization (barriers to trade are diminishing) •Increase in consumer purchasing power •E-business THREATS Pending lawsuits from disgruntled employees (Feeling abused, ill-treated, and improperly compensated) •Terrorism •Competitors (market entrants and current market competitors) •Negative publicity •International laws against anti-dumping •Retail innovations such as the internet •”Category Killers” such as Toys “R” Us (Toy department competitor) •Economical considerations: foreign currency, inflation, governmental costs, trade restrictions, and changes in tariffs and trade rates ANALYSIS OF THE CURRENT STRATEGY OF WAL-MART 1) BUSINESS LEVEL Wal-Mart’s business-level strategy is a cost leadership strategy. They maintain that they can buy goods for a low cost, sell them for less than their competitors, and turn a profit on volume and turnover.

They achieve this strategy by under-pricing competitors and therefore gaining market share and sales, driving some competitors out of the market entirely. Cost leadership strategy is obviously more on the cost competitive advantage side; it is focused in systems and procedures to find the lowest-cost products to purchase as raw materials and frequent evaluation processes are used to monitor their supplier’s performance. Wal-Mart is efficient and effective in supply-chain management which includes distribution, logistics, and inventory turnover. It also pays more attention on human resource management. These help Wal-Mart control their costs. 2) CORPORATE LEVEL Wal-Mart diversifies and operates in three different store formats: Wal-Mart stores, Sam’s Club, and Wal-Mart international.

The Wal-Mart stores include Wal-Mart discount stores in original rural formats, Supercenters which are open 24 hours a day, and Neighborhood Markets which target the urban city markets. Sam’s Clubs are geared toward the small businesses that buy bulk and large families that might be attracted to buying larger quantities. It is imperative for Wal-Mart to cater every region’s differences in product preferences; thus, they work under the “Different Stores for Different Folks” philosophy. 3) COMPETITIVE LEVEL Wal-Mart uses aggressive pricing as a tactical action. Wal-Mart prices some products to increase overall sales revenue and to attract customers to its stores in hopes that they will purchase other items as well.

Aggressive pricing works when reduced prices generate sales revenues in excess of revenues that would have been generated without the price cuts and when customers buy other higher-margin items while shopping. Aggressive pricing is used with virtually all products that Wal-Mart sells. Toys and electronics are priced aggressively during holiday seasons. Recently, Wal-Mart aggressively priced appliances in order to compete against Best Buy and Home Depot. 4) ACQUISITION Due to globalization, Wal-Mart developed acquisitions and increased its market power and share. Acquisition makes it easier for entry into other countries as well as defending against Wal-Mart’s competitors.

When they acquire reputable retailing businesses, there is one less powerful competitor. Wal-Mart also can get more experience and learn new techniques in the process of an acquisition. One example was the adoption of the George line of fashion clothing that was developed by their acquisition Asda, a Wal-Mart look-alike that had a sizable footprint in the United Kingdom. 5) INTERNATIONAL Wal-Mart has become a globally competitive retailing store because it has acquisitions and joint ventures that are successful and effective which makes Wal-Mart develop very quickly. Now, Wal-Mart operates 2,760 stores outside the United States in various formats, under diverse brand names, in 13 foreign countries and territories.

Wal-Mart International includes “wholly owned operations in Argentina, Brazil, Canada, Puerto Rico, and the united Kingdom; the operation of joint ventures in China; and the operations of majority-owned subsidiaries in Central America, Japan, and Mexico. ” PERFORMANCE ANALYSIS OF WAL-MART 1) BALANCED SCORECARD ? 2) FINANCIAL RESULTS ? 3) CORPORATE SOCIAL RESPONSIBILITY Wal-Mart’s strategy is to allocate $500 million per year in corporate social responsibility to address the concerns of government leaders and environmentalists. The lawsuits, animosity, and rejection of stores have really opened Wal-Mart’s eyes to their current operations. An improvement must be made. Therefore, they must work hard to maintain a good reputation and repair community relations.

Moreover, the focus concerns and results from the 2009 annual report are stated by Wal-Mart: “Wal-Mart has both a responsibility and an opportunity to be a leader in sustainability. “Sustainability 360” is our Companywide effort to take sustainability beyond our direct footprint to encompass Wal-Mart’s associates, suppliers, communities and customers. Through this initiative, we are helping our suppliers and customers become more energy-efficient and independent. After evaluating our own environmental impact, we set goals to supply 100 percent of our energy needs through renewable sources, to generate zero waste and to promote markets for environmentally sound products.

Already, we have made progress, which will make Wal-Mart even more efficient, innovative and competitive. Last year, for example, Wal-Mart set out to make its most energy-intensive products 25 percent more efficient by 2011 and to double the sales of items that make homes more energy-efficient. Our U. S. logistics team saved almost $200 million last year through productivity and fuel-efficiency programs. These initiatives not only saved money, but also improved energy usage and reduced our emissions. Equally as important, they are now a permanent part of our transportation program. Increasingly, we feature environmentally friendly products in our stores and clubs.

From Alabama to Mexico City, we prefer to sell locally grown produce and sustainably harvested wood products. We recycle everything possible – from cardboard to plastic – and are pleased that more and more customers are using our sustainable, reusable bags. ” STRATEGIC ALTERNATIVES FOR WAL-MART STRATEGIC PLAN AND ACTIONS 1. Avoid being too Aggressive in their Corporate Strategy oEase their way into foreign markets (avoid entering into them fast and buying companies) oAvoid being too ruthless oCommunities view Wal-Mart as destroying them ?Closes down local community stores 2. Be a better neighbour to smaller communities oIncrease Corporate Social Responsibility and Philanthropy oGet more involved with communities rather than from the contribution of heir employees oElect managers and executives to go into local communities and give their time in a more meaningful way ? Possibly work on community projects oThis will develop positive media attention oRepair domestic relations 3. Consider Unions oWal-Mart should allow their employees to organize themselves and become less strict o their anti-unionization policy ? May reduce the negative public image for their employee relations ? Regain credibility and reputation as well as saving litigation costs 4. Cooperation oWal-Mart should soften their approach when trying to break into foreign markets so they do not upset the local people and government oWorking with governments should be a primary focus because of the authority and power they have ?

This will allow Wal-Mart to adjust to the various markets and succeed in their operations and relationships CONCLUSION Wal-Mart, the largest discount retailer, has seen better days. Their growth has been succeeded by their major competitors. A waning public image has become the focal point for improvement regarding lawsuits and their corporate social responsibility. The expansion in the domestic market has suffered through these issues. This case analyzed the different aspects of the retail business that included the external, internal, and business strategy concepts. Overall, an assessment was made on Wal-Mart and recommendations were given to try and address their problems and where their future is headed.

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