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WalMart Strategic Audit

b. Top Management
III. EXTERNAL ENVIRONMENT:
a In order to analyze the strategic situation first of all SWOT analysis have been under taken, which I have presented as under:
SWOT Analysis of the Wal-Mart Company
STRENGTHS
Strong Brand name.
Extended customer in more than 200 countries.
Use of SAP R/3 Enterprise Resource planning software
Low threat of new entrants.
Continuous training programs for employees.
High budgets of advertising and promotion.
Good relations with media.
Web based presence.
WEAKNESSES
Subsidiaries create legal and territorial problems.
Lack of funds for regional suppliers to continue expansion
Old image still exists.
Inconsistent marketing message.
OPPORTUNITIES
Expansion in shape of introduction of new and innovative products.
Expanding market due to globalization.

THREATS
Current economic climate.
Results to be achieved in future can be less than projected
"The Threats-Opportunities-Weaknesses-Strengths (TOWS) Matrix is an important matching tool that helps managers develop four types of strategies: So Strategies, WO strategies, ST Strategies, and WT Strategies.
SO strategies use a firm’s internal strengths to take advantage of external opportunities.
WO Strategies aim at improving internal weaknesses by taking advantage of external opportunities.
ST Strategies use a firm’s strengths to avoid or reduce the impact of external threats.
WT Strategies are defensive tactics directed at reducing internal weaknesses and avoiding environmental threats." (David, 180-181)
SWOT Matrix:
External Opportunities (O)

1. Double-digit growth rate in retail market in Central and North Europe.
2. Consumption of 70 cans per capita annually.
External Threats (T)
1. Moderate threat of substitutes.
2. Competitors have gained…
(P.454)
The process of strategic management has proven to be the force of providing financial benefits for the organizations. In The Balanced Scorecard, Kaplan and Norton provided managers a framework to measure organizational performance from four perspectives: financial, customer, internal business processes, and learning and growth. While organizations worked to implement their own strategy for using balanced measures, Kaplan and Norton discovered a consistent pattern for achieving strategic focus and alignment." (Kaplan &amp. Norton)
"The Threats-Opportunities-Weaknesses-Strengths (TOWS) Matrix is an important matching tool that helps managers develop four types of strategies: So Strategies, WO strategies, ST Strategies, and WT Strategies.
6. Wal-Mart is one of the many organizations that use SAP R/3 Enterprise Resource planning software. This software allows all members of the Wal-Mart organization to access the information at anytime where ever they are in the world." (The geographic view of Wal-Mart can be label as global)
* "The Strategic Position and Action Evaluation (SPACE) Matrix is another important stage 2 matching tool with four-quadrant framework indicates whether aggressive, conservative, defensive, or competitive strategies are most appropriate for a given organization.

WalMart Strategic Audit