Module Title: Strategic Management
Module Code: SIB5003-B
Walmart Strategic Management Report
Name: Muhammad Hassan Asif
UoB: 20028946
Word Count: 3078
1
,Contents
1.Executive Summary......................................................................................................................3
2. Introduction..................................................................................................................................4
3. External analysis..........................................................................................................................4
3.1 PESTEL Analysis..................................................................................................................4
3.2 Porter’s Five Forces...............................................................................................................6
4. Internal Analysis..........................................................................................................................8
4.1 Value Chain Analysis............................................................................................................8
4.1.1 Primary Activities...............................................................................................................9
4.1.2 Inbound logistics.............................................................................................................9
4.1.3 Operations.......................................................................................................................9
4.1.4 Outbound Logistics.......................................................................................................10
4.1.5 Marketing Sales............................................................................................................10
4.1.6 Services.........................................................................................................................10
4.2 Support Activities................................................................................................................10
4.2.1 Infrastructure.................................................................................................................10
4.2.2 HRM.............................................................................................................................10
4.2.3 Technology...................................................................................................................11
4.2.4 Procurement..................................................................................................................11
4.3 VRIO Analysis.....................................................................................................................11
5. SWOT Analysis.................................................................................................................13
6. Key Success Factors..................................................................................................................14
7. Strategy Formulation.................................................................................................................15
7.1 Business Level Strategy.......................................................................................................15
7.2 Corporate level strategy.......................................................................................................16
7.3 BCG Matrix.........................................................................................................................18
8. Evaluation of Options................................................................................................................20
9 Recommendation of Options......................................................................................................20
9.1 Opening more stores globally..............................................................................................20
9.2 Improving Human Resources Practices...............................................................................21
9.3 Reducing Overall Plastic Bags Usage..................................................................................21
9.4 Improving quality standards................................................................................................21
2
, 9.5 Increasing Online Presence..................................................................................................21
9.6 Strategic Alliances...............................................................................................................22
10. Implementation........................................................................................................................22
Conclusion.....................................................................................................................................26
Bibliography..................................................................................................................................26
1.Executive Summary
Walmart is known as very popular retailer and has spread across globally providing various
products and services. the purpose of this report is to analyze Walmart’s external and internal
environment, strategy formulation, implementation and providing recommendations. Following
research, it has been noticed that Walmart maintains a competitive advantage as it offers a huge
variety of products at an extremely low price. Some issues were identified within Walmart in
their internal environment such as below par human resource. Walmart has further improved
from previous fiscal years and continues to grow. Following the cost leadership strategy helps
Walmart in maintain and keeping its competitive advantage. Walmart focusing on diversification
can expand the brand further and increase their profit margin. The report also provides
recommendations to Walmart which can be useful for the future and maintain it’s current
strategy but focusing more on diversification can assist Walmart to increase market share even
more and thus maintain competitive overall.
3
Module Code: SIB5003-B
Walmart Strategic Management Report
Name: Muhammad Hassan Asif
UoB: 20028946
Word Count: 3078
1
,Contents
1.Executive Summary......................................................................................................................3
2. Introduction..................................................................................................................................4
3. External analysis..........................................................................................................................4
3.1 PESTEL Analysis..................................................................................................................4
3.2 Porter’s Five Forces...............................................................................................................6
4. Internal Analysis..........................................................................................................................8
4.1 Value Chain Analysis............................................................................................................8
4.1.1 Primary Activities...............................................................................................................9
4.1.2 Inbound logistics.............................................................................................................9
4.1.3 Operations.......................................................................................................................9
4.1.4 Outbound Logistics.......................................................................................................10
4.1.5 Marketing Sales............................................................................................................10
4.1.6 Services.........................................................................................................................10
4.2 Support Activities................................................................................................................10
4.2.1 Infrastructure.................................................................................................................10
4.2.2 HRM.............................................................................................................................10
4.2.3 Technology...................................................................................................................11
4.2.4 Procurement..................................................................................................................11
4.3 VRIO Analysis.....................................................................................................................11
5. SWOT Analysis.................................................................................................................13
6. Key Success Factors..................................................................................................................14
7. Strategy Formulation.................................................................................................................15
7.1 Business Level Strategy.......................................................................................................15
7.2 Corporate level strategy.......................................................................................................16
7.3 BCG Matrix.........................................................................................................................18
8. Evaluation of Options................................................................................................................20
9 Recommendation of Options......................................................................................................20
9.1 Opening more stores globally..............................................................................................20
9.2 Improving Human Resources Practices...............................................................................21
9.3 Reducing Overall Plastic Bags Usage..................................................................................21
9.4 Improving quality standards................................................................................................21
2
, 9.5 Increasing Online Presence..................................................................................................21
9.6 Strategic Alliances...............................................................................................................22
10. Implementation........................................................................................................................22
Conclusion.....................................................................................................................................26
Bibliography..................................................................................................................................26
1.Executive Summary
Walmart is known as very popular retailer and has spread across globally providing various
products and services. the purpose of this report is to analyze Walmart’s external and internal
environment, strategy formulation, implementation and providing recommendations. Following
research, it has been noticed that Walmart maintains a competitive advantage as it offers a huge
variety of products at an extremely low price. Some issues were identified within Walmart in
their internal environment such as below par human resource. Walmart has further improved
from previous fiscal years and continues to grow. Following the cost leadership strategy helps
Walmart in maintain and keeping its competitive advantage. Walmart focusing on diversification
can expand the brand further and increase their profit margin. The report also provides
recommendations to Walmart which can be useful for the future and maintain it’s current
strategy but focusing more on diversification can assist Walmart to increase market share even
more and thus maintain competitive overall.
3
