Premium Essay

Final Paper for Wal-Mart in Spain

In: Business and Management

Submitted By LadyStevDbb
Words 1101
Pages 5
Strategic Audit: Wal-Mart in Spain
Debbie D. Stevenson
Grantham University

Wal-Mart in Spain Wal-Mart is currently ranked as the world’s number one retailers and the number one company in the world of sales (over $200 billion) on the fortune 200 lisr (www.wal-mart.com) (www.fortune.com) Wal-Mart Stores is one of the largest retail companies in the United States. Wal-Mart has four parts of their strategies that makes their mission possible. The four strategies that they use are: * Dominance in the Retail Market * Expansion in the United States and International Markets * Creation of Positive Brands and Company Recognition * Branch Out into New Sectors of Retails
When Sam Walton opened his first Wal-Mart in 1962, he declared that three policies goals would define his business: respect for the individual, services to customer, and striving for excellence (www.walmart.com).
Wal-Mart’s strategy for corporate management required selling high quality and brand name products at the lowest price (Vance, 119). In order to keep low prices, the company reduced costs by the use of advance electronic technology and warehousing. It also negotiates deals for merchandise directly from manufactures, elimination the middleman (Vance, 72. One of Wal-Mart key strategy is to dominate the competition retail market. Sam Walton, the company founder put in place a retail philosophy the company still believe and follows. Wal-Mart is a discount retailer because they sell their products at the lowest possible prices. By selling at the “lowest prices.” Sam Walton’s vision outline the success discount retailing to cut the price on an item as much as possible, lowering the markup, and earn profit on the increased volume of sales. (Wal-Mart pricing Philosophy document,www.walmart.com). One of the strategic goals of Wal-Mart was to expand internationally. Reviewing…...

Similar Documents

Premium Essay

Wal-Mart

...Wal-Marts outlook wary Wal-Mart reported that a lower tax rate boosted its net income by 8.6 percent during the fourth quarter, but the company offered a tempered forecast going forward as its lower-income shoppers struggle with rising gas prices, delayed income tax refunds and higher payroll taxes. Wal-Mart said that February started "slower than planned" but noted that it was largely due to the Internal Revenue Service's decision to delay accepting tax returns by eight days until Jan. 30 because of late Congressional action to tackle the budget crisis last year. Which resulted in Wal-Mart customers cashing about $1.7 billion in income tax refunds year to date, compared with $4 billion for the same time period a year ago, Wal-Mart said. Shoppers last year had used refund money to buy TVs ahead of the Super Bowl, the company said, but this year, the retailer said it's not sure how customers will use the refunds. Going forward, Wal-Mart said it's unclear how the payroll tax, implemented last month when the U.S. government allowed a temporary 2 percentage point cut in Social Security taxes to expire last month, will affect spending. Nearly all working Americans are taking home less pay and that payroll tax increase will equate to $70 per month less in take home pay for Wal-Mart shoppers, assuming an average annual income of $42,500. Also, Wal-Mart said it still is grappling with allegations that surfaced last April that it failed to notify law enforcement that company......

Words: 348 - Pages: 2

Premium Essay

Wal Mart

...Executive Summary: This paper is an analysis and evaluation of Wal-Mart and the future venture into the retail sector of India. The challenges that Wal-Mart needs to resolve to become successful range from the cultural differences to problems with supply chain management in India. The analysis below identifies the challenges of many factors dealing with the Wal-Mart, Bharti and the Indian retail sector. These factors for Wal-Mart would deal with the ability to operate in India efficiently as they do in the US. In addition, Wal-Mart to be successful will have to sort out problems with the government, culture differences and the partnership with Bharti. These factors for Wal-Mart and Bharti will be presented in more specific detail through a SWOT analysis. The analysis will evaluate Wal-Mart as a company in relation to the future operation in the Indian market. Then the Bharti Company will be analyzed using a SWOT to pin point how the company will fit into the overall plan of Wal-Mart operating in India. The report will further evaluate the Indian retail sector through a competitive industry analysis using the Porter’s 5 forces model. This model will detail the threats to the market entry, supplier power, buyer power, availability of substitutes and competitive rivalry as they relate to the India retail sector. The report will then offer alternatives for the Wal-Mart company. These alternatives would include not progressing forward within India, chose a global market with less......

Words: 492 - Pages: 2

Premium Essay

Wal-Mart

...Abstract This paper is an analysis. Labor Market Level. Stakeholders According to walmartstores.com, Wal-Mart is committed to engaging all of their shareholders, both internally and externally, to become the most sustainable, responsible company they can. Wal-Mart believes that by listening to, and partnering with their stakeholders, they are truly saving their customers money so they can live better. Wal-Mart’s stakeholder group differs, in an effort to adapt to the changing needs, and issues that continue to evolve in the marketplace. As Wal-Mart pursues their corporate goals, they further strengthen relationships with shareholders in order to be transparent and enhance their relevancy with the customers and communities they serve. Markets Wal-Mart focuses on creating a low price appeal to its customers. The marketing strategy relies on word of mouth communication based on everyday low prices; consequently the focus market will be drawn to the low price guarantee. The low price strategy aligns well with its objective of minimizing operating cost while adding value for customers because of the savings from advertising, and these savings are passed onto the customer by offering products at a lower price than the competitor. Competition Because of Wal-Mart’s low price offering, low cost operations as well as their operational efficiency, Wal-Mart tops the list of retailers worldwide. While some retailers such as Dollar General offering a low price initiative......

Words: 508 - Pages: 3

Premium Essay

Wal Mart

...Overall, Wal-Mart’s decision to enter the German market is incorrect. Initially, Wal-Mart chose German as a right venture investment market mainly due to three motivations. Firstly, German as the world’s third-largest economy could not be ignored by Wal-Mart. In addition, Wal-Mart thought German was a good central base which could help expand to any corner of the European continent. Furthermore, Wal-Mart believed that every day low price (EDPL) strategy would be much suitable for German’s high price-sensitive market. However, the facts proved that Wal-Mart in German is unsuccessful in four aspects because of the inadequate environmental scanning. In the aspect of economy, German was in economic downturn. The retail industry was growing slowly and earning less profit. Besides, high real estate prices and wage costs increased the operational costs of Wal-Mart in German. In terms of German’s legal and governmental environment, German government refused to issue food and grocery retailing licenses. Accordingly, Wal-Mart was only permitted to entry into German market with the method of acquisition. However, Wal-Mart’s operation was against several laws of German, two of them were in particular. One of them is associated with the low selling price, which would lead to the unfair competition. Consequently, Wal-Mart was prohibited to use pricing strategy any more. This indicates that although German market is price-sensitive, legal environment in this country makes EDLP hard to carry...

Words: 484 - Pages: 2

Premium Essay

Wal-Mart

...Case Study: Wal-Mart DeLeon A. Rich Management and Strategy Webster University May 15, 2013 Table of Contents Table of Contents 1 Introduction 2 Wal-Mart’s Threats and Challenges 2 Priorities of Wal-Mart CEO during the October Address 2 Wal-Mart Board’s Strategic Initiatives 3 Recent Wal-Mart Initiatives 4 Recent Initiatives 4 Comment: Strategy 5 Comment: Personal Relations 5 Wal-Mart’s Social Challenges 5 Conclusion 5 References 5 Introduction Every business organization in the contemporary world continues to face serious challenges and turbulences. Such challenges and turbulences have called on to business enterprises to re-structure and re-engineer their strategic plan in order to establish effective strategic initiatives. Dynamisms and increased competition are some of the challenges that business enterprises continue to face. One example of a business enterprise that has had to re-structure and re-engineer its strategic plan amidst increased dynamisms and competition with Wal-Mart. Late in 2005, Wal-Mart announced a series of sweeping new strategic initiatives. Such strategic initiatives are aimed at enhancing the position of the business within the industry and the market as well as performances. This case study provides an in-depth analysis of Wal-Mart in respect to its current strategy and challenges. Analysis of the threats and challenges coupled with priorities that Wal-Mart CEO, Lee Scott set in the address on......

Words: 3007 - Pages: 13

Premium Essay

Wal-Mart

...1. Functionalist questions a. What are the functions of Wal-Mart for society? Wal-Mart is an American multinational retail corporation and one of the leading discount department retail stores (Wikipedia). It is the highest- grossing company in the United States (Fortune 2008a), and is by far one of the most successful companies worldwide. Wal-Mart offers a place to buy the majority of our goods under one roof like electronics, furniture, clothing, pharmacy, sports, food, books etc. Wal-Mart sells good at lower price than the others and this is even shown by its slogan “save money, live better”.  It drives out smaller and sometimes even the expensive stores out of business due to its lower prices. Wal-Mart provides jobs for thousands of people in the society including the low-skilled people. It represents a trend of one stop shopping where we can get almost everything that we want. b. Are they the same or different from the functions of Wal-Mart in our individual lives? How do the two types of functions connect? One of Wal-Mart belief and function is the respect for the individual. They have given importance of respect for every individual and every member of the community. For individuals; Wal-Mart offers convenience, good pricing and multiple products under one roof. It reduced the overall cost to consumers as they don’t have to go from one place to another to buy different goods. c. Does Wal-Mart have both manifest and latent functions? Manifest functions are......

Words: 1974 - Pages: 8

Premium Essay

Wal Mart

...in 1962, Wal-Mart has grown to be the largest corporation in the world. Wal-Mart is revolutionizing the way the retail items are passed from producer to end-user by drastically cutting costs at every opportunity and demanding the same of their suppliers. These savings passed onto the consumers has not come without a price! Where some see a discount or a job opportunity, others see an empire that pulls the rug out of existing businesses. For years, Wal-Mart has been accused of a number of criminal actions and questionable ethical practices. Many people, from all walks of life, find themselves discussing (and some even arguing) the topic: “Is Wal-Mart good for America?” Many blame this modern trend of globalism, the outsourcing of manufacturing, the closing of mom & pop stores and independent grocers on Wal-Mart. But the question that must be asked is as follows: Is Wal-Mart really to blame for all the things that they are being accused of? After all, aren’t the consumers fueling Wal-Mart’s position as the number one retailer in the world by their constant search for the lowest possible price? And don’t we have a choice as to where we should shop and isn’t it our responsibility to avoid businesses that we deem are unethical? Is Wal-Mart unethical or are they just misunderstood? Background Wal-Mart has been forced to defend itself against several lawsuits that were filed against them. In the case; Cynthia Haddad vs. Wal-Mart stores, Inc. Wal-Mart was......

Words: 4304 - Pages: 18

Premium Essay

Wal-Mart

...Wal-Mart Jessica Martin May 28, 2011 MKTG305 AIU Online Abstract Wal-Mart is rated 1 on the Forbes 500 international list. It has stores in 15 different countries. It has always kept its mission statement. The mission statement for Wal-Mart is to save people money so they can live a better life. Japan, Honduras, India, and the United States each have their own way of doing business. They each advertise differently, have different ways of pricing, and contain different products. Wal-Mart Wal-Mart has become an icon. The first Wal-Mart discount store opened in 1962 in Rogers, AR. On October 31, 1969 it was incorporated as Wal-Mart Stores, Inc. (Wal-Mart, n.d.) It was listed on the New York Stock Exchange in 1972. At this time there were 276 stores in 11 states. In 1983 the first Sam’s Club membership warehouse was opened and in 1988 the first supercenter opened. Wal-Mart became an international company in 1991 when it opened a Sam’s Club near Mexico City. (Wal-Mart, n.d.) Most of the Wal-Mart stores are now supercenters. The supercenters have a complete grocery store along with general merchandise. When Sam Walton opened the first Wal-Mart he had a vision. His vision was to help save people money and live better lives. Wal-Mart has more than 9,000 retail stores in 15 countries and has 2 million employees worldwide. Mr. Walton said it best “If we work together, we’ll lower the cost of living for everyone…we’ll give the world an opportunity to......

Words: 1434 - Pages: 6

Premium Essay

Wal-Mart Customer Service Paper

...Wal-Mart’s mission statement and vision states, “We save people money so they can live better,” has become famous throughout the world along with their founder, Sam Walton’s famous words, “If we work together, we’ll lower the cost of living for everyone…we’ll give the world an opportunity to see what it’s like to save and have a better life,” (About.com, 2013). Applying Walton’s vision and principles for low competitive pricing and knowledge of customer preferences has mad Wal-Mart the largest retail giant in the nation. According to Paul Timm, “Ancillary services that complement the company’s main products can provide added convenience for customers,” (Timm 2011, 186). Wal-Mart is the best example of ancillary services for customers by offering services such as auto/tire services, lawn and gardening, deli/grocery, banking, hair salon, fast food, etcetera. Although Wal-Mart has implemented policies and rules which are to help their employees exemplify the company’s overall culture, they are seldom followed since the death their founder. They have been making the customer’s shopping experience memorable, but seldom in a positive way. Like me, most customers just shop at Wal-Mart out of habit or convenience. Timm’s theory on loyalty describes exactly how most of the shoppers like me view their stores, “Some people buy as a result of habit, convenience, or price but would be quick to defect to an alternative,” (12). There were many theories I learned in this course; however...

Words: 671 - Pages: 3

Premium Essay

Wal-Mart

...The Grassroots Battle: Wal-Mart Supercenter Rosemead Stephen J.J. McGuire, Christine Chueh, Tia Mao & Isela Mercado California State University, Los Angeles September 11, 2008 Wal-Mart, founded in 1962 in Rogers, Arkansas, was the largest retail chain in the world. Its growth was derived from a wide range of competitive advantages, such as Wal-Mart’s sophisticated use of information technology to keep track of and reorder items, the use of “Just-in-Time” shipments of merchandise from distribution centers that eliminated the need for costly in-store inventory storage2, and the sheer economies of scale it achieved compared to its rivals. Wal-Mart also exploited “economies of density” to make the most of its centralized distribution hubs.3 These advantages, combined with its “Every Day Low Price” strategy, enabled Wal-Mart to serve its target market, of which the residents of Rosemead, California were typical. In 2003, Wal-Mart’s attempt to establish a Supercenter 12 miles from downtown Los Angeles in the city of Inglewood, California was stopped by a community grassroots effort to keep the retailer out. Wal-Mart then diverted its expansion plan to the nearby city of Rosemead, where a new Supercenter would benefit from two Wal-Mart distribution centers within a cluster of ten neighboring Wal-Mart stores. In September 2004, the Rosemead City Council voted in favor of Wal-Mart’s plans to open its first Supercenter in Los Angeles country, alienating many residents who felt......

Words: 11305 - Pages: 46

Premium Essay

Wal-Mart Organizing Paper

...Wal-Mart Organizing Paper MGT/330 Management Theory, Practice, and Application Wal-Mart Organizing Paper In the organizing functions of management it takes a familiarity of being able to put various systems together to work as one; these systems include knowledge, human resources, financials, and physical assets. All the systems are allocated to be able to reach any and all objectives possible for any company looking to succeed in any type of business. Knowledge is an aspect of organizing functions of management that requires not only acquiring but gathering as much information as possible, it also means that after getting the information the company must be able to correctly use the information. Technology on the other hand, as an organization function of management is of the utmost importance in this era of advanced technology where companies are storing information gathered, as well as their own personal information. Wal-Mart as an enterprise has used both knowledge and technology to help develop its business as one of the most important and well known business, proof of its viability Wal-Mart has over 3815 stores nationwide (Wal-Mart, 2011). Wal-Mart has created a structure that has brought much success to the organization. Knowledge as an organization function of management Wal-Mart has incorporated knowledge as a main focus to be able to grow. One way that Wal-Mart has used knowledge to its benefit is by knowing that firms nowadays increasing use of......

Words: 1187 - Pages: 5

Premium Essay

Wal-Mart

...This article appears in the Nov. 14, 2003 issue of Executive Intelligence Review. Wal-Mart Is Not a Business, It's an Economic Diseaseby Richard Freeman and Arthur Ticknor(See also ``Wal-Mart Collapses U.S. Cities and Towns,'' Nov. 14, 2003; ``Wal-Mart Eats More Manufacturers, Jobs,'' Nov. 21, 2003; Wal-Mart Family Trust--The Real Beast of Bentonville, Ark., Jan. 23, 2004.)The Wal-Mart department store chain, which employs 1.3 million people at 4,700 stores worldwide, and in 2002 became the largest corporation in the world, is levelling economies of the U.S., industrial nations, and the Third World.Wal-Mart is a driving force behind the decadent Imperial Roman model of the United States. Unable any longer to reproduce its own population's existence through its own physical economy, the United States has, for the past two decades, used an over-valued dollar to suck in physical goods from around the globe for its survival. Wal-Mart is both the public face and working sinews of that policy. It brings in cheap pants from Bangladesh, cheap shirts from China, cheap food from Mexico, etc. Workers who produce these things are paid next to nothing.Not since the days of the British East India Company as the cornerstone of the British imperial system, has one single corporate entity been responsible for so much misery. At the core of its policy, Wal-Mart demands of its suppliers that they sell goods to Wal-Mart at such a low price, that they can only do so by outsourcing their work to......

Words: 5677 - Pages: 23

Free Essay

Wal-Mart

...Wal-Mart Evaluation Interview Michael Branum Business 303 Sheri Bender December 12, 2011 For my interview, I had to use someone else because I am no longer working; I chose to use Wal-Mart because my wife works there. My wife was able to get me in contact with the Mario he is an Assistant Manager and he is the one that does the evaluations for parts of the store. Each manager has his or her own employees or sections of the store that they deal with and each does his or her own evaluations. There are six different assistant managers and each has their own section of the store such as groceries or men’s clothes etc. He stated that evaluations involve written performance standards; an evaluation tool, and also the opening for review and feedback from both the manager and the employee so the employee can state their own opinion on what happened. Mario also said that the evaluations are done with in the first ninety (90) days of hire and then done once a year. Mario said that when he goes to do evaluations on his employees he will try and does his best to set aside time to be able to sit down with the employee and make sure no one will interrupt the evaluation, because all of the managers are being pulled every which direction in the day he said that he has to have the time set aside or he will be pulled somewhere else and the evaluation will not get done on time. Once he is done with the evaluations they are sent to the human resources department......

Words: 380 - Pages: 2

Premium Essay

Wal-Mart

... Wal MartWal-Mart opened its first super store in Shanghai China, in 2005. By using the same tactics that is used within the United States, offering numerous items at low prices, China was still the ideal location for Wal MartWal-Mart to continue to thrive within the foreign market. Wal MartWal-Mart quickly started gaining the trust of the local government and local officials in order to expand quickly. By using local venture partners, Wal MartWal-Mart was able to bypass the government’s opposition to foreign businesses opening. Wal MartWal-Mart further was able to gain the trust of the local government byut allowing the All China Federation of Trade Unions (ACFTU) to operate within it’s stores in the countryover there, something that here within the United States Wal MartWal-Mart does not allow. Being able to offer China’s exports within its it’s own country, Wal MartWal-Mart is able to save money from the exporting and importing fees that are normally associated with its’s super centersupercenters, t. Thus creating a substantial gain in its earnings. Comparing China to the United States, the per capita is allowing Wal MartWal-Mart to draw the conclusion that it will be as equal to the United States when it comes to the success that it hopes achieves. II. Questions & Answers 1. What were some of the reasons behind Wal-Mart’s entry into the Chinese retail market? 2. Answer. The company needed to grow. With the huge success Wal-Mart had......

Words: 1182 - Pages: 5

Premium Essay

Wal-Mart

...Wal-Mart MKTG305-06 Marketing Management Abstract Wal-Mart is a Fortune 500 international country with 5,651 stores in 26 countries. Wal-Mart is located in different countries, possibly under a different name. This paper will discuss the four Ps of marketing and any differences observed in making this company international. Wal-Mart Wal-Mart is a Fortune 500 international business. Wal-Mart employs 780,000 associates in 5,651 stores in 26 countries. The main corporate office of Wal-Mart is in Bentonville, Arkansas. Wal-Mart first opened in Rogers, Ark in 1962. The idea of discount retailing was not new, but Sam Walton, the founder, wanted a new type of store. To only name four countries in which Wal-Mart stores can be found Argentina, Honduras, South Africa, and Swaziland, but they may be seen under a different name in each country. In Argentina, Wal-Mart may be known as Changomas. In Honduras, Wal-Mart may be seen as Centroamérica. In South Africa, Wal-Mart may be seen as Massmart. In Swaziland, Wal-Mart may be seen as Massmart (Wal-Mart, 2012). The Four P Components of the Marketing Mix were Product, Place, Promotion, and Price. The product is the items or services the company sales. The place is the location of the company. The promotion is the ads used to sale the products or service to the customers. The price is the amount of money that the customers are willing to pay for the product or service while the company can still make money. The Evolution...

Words: 1264 - Pages: 6