Wal-Mart Essay

797 Words Oct 2nd, 2013 4 Pages
Wal-Mart, Inc.: A Tribute to Sound Strategic and Operational Planning
Ben F. Soares
MGT/521
September 13, 2013
James Sternieri

Company Overview:
Wal-Mart, Inc. is a retail store that sells everything from clothing and groceries, to electronics, and computers. Established in 1969, the company employees 2.2 million workers, and operates 10,130 stores across 27 countries, which makes it the largest retail company in the world (www.marketline.com, 2013, p. 3-4). Wal-Mart’s net profits decreased by 4.2% to $15,699 million from 2011 to 2012, however; the company continues to grow, which is a tribute to their sound strategic and operational plans (www.marketline.com, 2013, p. 3).

Mission Statement:
Wal-Mart runs its business under
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30). Wal-Mart is expecting that the grocery products will help increase guest traffic into the stores, which should “…lead to increased sales in the segment which have higher margins, which will drive profitability” (www.marketline.com, 2013, p. 30).
Wal-Mart mission statement, slogan, and vision indicate that Wal-Mart wants to provide quality merchandise, at low costs. Wal-Mart has accomplished this goal by implementing an operational strategy of cost reduction. These cost cutting efforts include efficient logistics and inventory management systems. Efficiencies in both these areas have helped Wal-Mart restock stores more rapidly, and have “…reduced inventory carrying costs, transportation costs, and costs associated with order fulfillment and materials management” (St. Onge, 1996, p. 33).

Internal and External Stakeholders:
Wal-Mart’s internal stakeholders are their employees, management team, board of directors, and investors. The internal stakeholders are directly affected by Wal-Mart’s strategic and operational plans because the success or failure of these plans, directly affect the company’s profitability. Wal-Mart’s cost reduction strategy will affect profitability, which will affect bonuses, incentives, dividends, and stock prices. Wal-Mart’s external stakeholders are their customers and suppliers. However, and external

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