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1. Walmart’s company strategies and supporting activities
Walmart is a major multinational American retail chain and supermarket which, at the time of the case, was planning a rapid phase of expansion by creating strategies to expand domestically and internationally, consisting of new store formats, new store franchises and new product ranges.
Walmart’s company strategy is to dominate the retail market, expand domestically in North America and into international markets, create positive brand recognition, and to expand into new sectors of retail. Supporting activities at the corporate level include ensuring that overall pricing and expansion approaches are aligned with the company strategy, and lobbying with Super Political Action Committees (SuperPACs) in Congress. Supporting activities at the business level consist of a revamped public affairs strategy in the domestic and international marketplace, as well as the strategic expansion into new retail sectors such as automotive repair, pharmacies and groceries. Supporting activities at the functional level include rolling out new products and store formats which are culturally tailored to the preferences and tastes of their local consumers. These include the use of open-air raw meat and fresh seafood sections and traditional Chinese medicine sections in Walmart China, the addition of different types of wheat tortillas in Mexico, and the use of festive Diwali promotions in South Asia.
Walmart’s corporate level actions are connected to its business level actions because the corporate level actions XXXXXX an XXXXXXXXXXX for XXXXXXXX level actions XX XXXXXXX. This XXX XX demonstrated in the following XXXX. XXX XXXXXXX, Walmart’s XXXX XXX greater internationalization XXXXX XXXXXX XXXXX XXXXXXXX managers XXX XXXXXXX to pursue culture XXXXXXXX products, and XXXXXX Walmart to pursue riskier XXXXXXX XXX acquisitions XX XXXXXX effectively. Walmart’s XXXXXXXX XXX use XX SuperPacs XX the XXXXXXXXX level, to create a more XXXXXXXX XXXXXXXX XXXXXXXXXX XXXXXXXXXXX, XXXX XXXXXXX XX environment XXX Walmart’s business XXXXXXXXXX XX thrive.
2. Stakeholder XXXXXX of XXX XXXX: XXXXXX and XXXXXXXXXXX
XXX stakeholder XXXXXX of the XXXX XXXXXXXX XXXX a XXXX’s main XXXX are XX its internal and external XXXXXXXXXXXX, such XX its XXXXXXXXX, XXXXXXXX, outsourced XXXXXXXXX, government, XXXXXXXXXXXX, XXXXXXXXX, XXXXXXX, XXXXXXXXX and XXXXXXXXX. XXXX theory XXXXXX in XXXXX XXXXXXXX to the shareholder XXXXXX of XXX XXXX, XXXXX XXXXXXXX that a XXXXXXX’s chief duty is owed to its XXXXXXXXXXXX (XX. the investors who XXXXXXXXX shares XX XXX company), XXX XXXX its chief aim should XX to XXXXXXXX XXXXXXXXXXX returns XXX shareholder XXXXXX.
A XXXXX-XX-eat breakfast XXXXXX firm’s main XXXXXXXX stakeholders XXX XXXXXXXXXXXX XXXX exist within XXX XXXXXXXXXXXXXX XXXXXXXXX of the XXXX. These XXXXXXX the XXXXXXXXX cereal firm’s employees, managers and outsourced XXXXXXXXX. XXX XXXXXXXXX XXXXXX XXXX’s external XXXXXXXXXXXX comprise XXXXXXXXXXXX that XXXXX XXXXXXX of the XXXXXXXXXXXXXX XXXXXXXXX XX XXX firm. XXXXX include the XXXXXXXXXX, shareholders, XXXXXXXXX, XXXXXXX, suppliers, XXXXXXX and creditors. XX the breakfast XXXXXX firm’s XXXX, XXXXX XXXXX XXXXXXX XXX XXXXXXXXXX XX XXXXXX and XXXXX Services (XXXXX XXXXXXXX XXX XXXXXXXXXXX content XX XXX cereal products), XXXXXXXX with young XXXXXXXX (who frequently XXXXXXX such XXXXXXXX), XXX XXXXX suppliers.
As the XXX of a XXXXX-to-XXX breakfast XXXXXX XXXXXXX such XX XXXXXXX Mills, I XXXXX XXXXXX whether XX XXXXXXXX XXXX XXX XXXX XXXXXXXXXX XXXXXXXXX or seek alternative costly XXXXXXXXXXXX by evaluating the impact and XXXXXXXX XX my stakeholders to continuing XX use this sweetener. XXX response XX XXXX of the above stakeholders is XX follows: XXXXXXXX stakeholders XXXXX likely XX concerned XXXXXXX XXXX XXX financial XXXXXXXXXXX, XXXXXXXXXX and corporate culture XX the XXXXXXX, which XXX XX XXXXXXXXXX affected by the XXXXXXXXX use XX the XXXXXXXXX. In XXXXX XX XXXXXXXX stakeholders, XXX government would XXXXXX XXX XXX be discontinued in order XX XXXXXXXXX public health, while XXX customers would XXXXXXXXX desire a switch XX a XXXXXXXXX XXXXXX. XXXXXXXXXXXX, XXXXXXX and suppliers XXXXX also XXXXXXXX be concerned about XXX reputational backlash XXXX the continued use of the XXXXXXXXX. Hence, it XXXXX be XXXX, given the impact XX XXXXXXXXXXXX, XX seek XXXXXXXXXXX and more XXXXXX replacements.
Porters Five Forces Model
Porter’s XXXX XXXXXX Model allows XXXXXXXXXX XX XXXXXXX the competitive XXXXXXXXX XX an industry based on the XXXXX XX XXXXXXXXX, XXX XXXXX of XXXXXX, substitutes, barriers to entry, and XXXXX rivalry. XXXXXX’s XXXX XXXXXX model XXX been applied to a variety of industries XX analyse XXX XXXXXXXXXXX level of an XXXXXXXX, and determine whether an XXXXXXXXX XX XXXXXX an unsustainable XXXXX XX competition, or XXXXXXX a XXX XXXXXXX has a XXXXXX XX succeed XXXX the competitive XXXXXXXXXXX XX XXX industry.
The XXXXXXX XXXXXXXXXX for XXX XXXXXXXX of XXXX XX Porter’s XXXX Forces XX XX follows. XXXXX of XXXXXXXXX is XXX, XXXXX of buyers XX moderate, XXXXXXXXXXX are high, XXXXXXXX to XXXXX XX high, and price XXXXXXX XX XXXX. XX the whole, XXXX suggests XXXX XXX XXXX XXXXXX XXXXXXXXX XX XXXX Cola XXX Pepsi is a highly XXXXXXXXXXX market unsuited for entry by new entrants.
For Coca-Cola and Pepsi, XXX XXXXX of XXXXXXXXX XX relatively XXXX XX the XXX companies XXX easily outsource their XXXXXXXXXX to XXXXXXX supplier in XXX global South, XXXX as XXXXXXX or XXXXX, XX XXX XXXXXXX XXXXXXXXXX XXXX in XXX XXXXX Americas XXXXX. Furthermore, given XXXX XXXX-XXXX XXX Pepsi XXXX strong global XXXXXX chains, the failure XX one XXXXXXXX XX deliver XXXXX XXX be XXXXXX substituted with another supplier XXXXXXXXX. The XXXXX XX buyers in XXXX industry is XXXX XXX XXXXXX, given that XXXX-XXXX and XXXXX XXXX a virtual XXXXXXXX (or duopoly) on XXX XXXX-XXXXXX XXXXXX, and are dominant rivals in this segment. However, consumers XXX highly XXXXX sensitive XXX XXXX switch out XXXXX drink options if XXXXXX should XXXX too XXXX. In terms of XXXXXXXXXXX, XXX XXXX-drinks market XX XXXXXXXXX with substitutes, as XXX Coca-Cola and XXXXX XXXXXX are XXX only easily replicable XX white label brands, but also XXXX XXXXXXXXXXX XXXX XXXXX XXXXX XX energy XXXXXX XXX XXXXXXXXXXXXX produced sweetened drinks. XXXXXXXX to XXXXX for Coca Cola XXX Pepsi are XXXX, XXXXX that highly sophisticated supply XXXXXX XXX XXXXXXXX XX XXXXXXXX XXX XXXXXXX of scale needed to profit XXX such low XXXXXX margin items. Finally, XXXXX XXXXXXX in this XXXXXXXX XX XXXX, given XXXX XXXX XXX Pepsi are XXXXXXXXX rivalrous XXX XXXXX engage in XXXXX wars by keeping their prices very XXX. XXXX is XXXX a low XXXXXX XXXX with high substitutability, so XXXXX rivalry XX XXXX driven up.
Internal Analysis: XXXXXX XXXX XXXX resources and XXXXXXXXXXXX XXXXXXX XX XXXX XXX XXX XXXX XX Wal-XXXXXXXX?(20 points)
XXXXXX list XXX resources and capabilities XXXX you XXXXXXXX XXXX XXX-mart under XXXX XX XXX question of XXXX XXXXX.
The XXXX XXXXXXXX is a toolkit for evaluating the XXXXX of a XXXXXXX’s resources, XXXXX XX how XXXXX XXX XXXXXXXXX a XXXXXXXX is, how XXXX or limited it XXXXX XX XX, how challenging it is XX XXXXXXX XXX resource, and XXXXXXX XXX XXXXXXXX is XXXXXXXXX XXX adequately XXXX by the organization. This essay XXXX XXXXXXXX Walmart’s XXXXXXXXXX, XXXXX XXXXXXXXXXX , direct-to-XXXXXXXXXXXX XXXXX, sophisticated global XXXXXX chain, XXXXXXX XX XXXXXX, workforce, XXXXXX website and XXXXXXX of XXXXXXXX service.
Foremost, XXXXXXX’s XXXXXXXXXX is XXXXXXXX, rare, XXXXXXXXXX and XXXXXXXXXXXXXXXX XXXXXXXXX. XXXXXXX’s XXXXXXXXXX for XXXX quality, brand XXXX XXXXXXXX at the lowest XXXXXX XX legendary XXXXXX XXX XXXXXX XXXXXXXX. XXXXXXX’s XXXXXXXXXX is XXXXXXXXX to replicate XXXXXXXXXXX, and took XXXX years to XXXXX XX in a XXX XXXX cannot be XXXXXX XXXXXXXX XX a XXX XXXXXXX.
Secondly, Walmart’s value XXXXXXXXXXX of XXXX XXXXXXX, brand XXXX XXXXXXXX at XXX lowest price is XXXXXXXX, XXXXXX, XXXXXXXX XXX XXXXXXXXXXXXXXXX XXXXXXXXX. While an effective XXXXX proposition, we XXXXX XXXX XXXX value proposition XX XXX altogether unique.
XXXX, XXXXXXX’s direct-to-XXXXXXXXXXXX deals, online XXXXXXX, XXXXXXX XX customer service XXX XXXXXXXXXXXXX XXXXXX XXXXXX chain is XXXXXXXX, rare, inimitable and organisationally XXXXXXXXX in a XXX that few of XXXXX XXXXXXXXXXX, such XX Lidl, Audi, Carrefour XXX XXXXXX are able XX XX.
Finally, Walmart’s XXXXXX and workforce are invaluable, XXXXXX, XXXXXXXX and organisationally supported. XXXXXXXXX, XXXXXXXXXXX factors of XXXXXXXXXX XXXX XX XXXX and labor XXX XXX as valuable as XXXXXXXXXX XXX XXXXXX XXXXX in XXX XXXXXX XXXXXXXX. XXXX XX XXXXXXX XXXXXXX’s brick-XXX-mortar stores and XXX-skilled XXXXXXXXX XXX XX easily XXXXXXXXXX.
Internal XXXXXXXX:XXXXXX XXXXXXX a XXXXX-XXXXX analysisfor the company ofCoca-XXXX.
XXXX XXXX’s value chain consists of XXX XXXXXXXX and XXXXXXXXXXX, XXXXXXXXX XXXXXXXXXXX, production, XXXXXXXXX, distribution, XXXXXXXXX, sales, XXXXXXXX and resource XXXXXXXX. XXXX XXXX’s research and development, XXXXXXXXX, and XXXXXXXX are conducted internally, XX they XXX higher value operations XXXXX most XX XXX XXXXX XX the supply chain XX captured. Coca Cola’s XXXXXXXXX procurement (XXXX XX the sourcing XX XXX ingredients and raw XXXXXXXXX), production, packaging, distribution, XXXXX XXX XXXXXXXX XXXXXXXX (XXXX XX XXX XXXXXXXXX XXXXXXXXXXX) XXX outsourced. XXX XXXXXXXXXXX occurs XXX a number XX reasons. Foremost, the XXXXXXXXXX production can XX XXXX XXXX affordably XXXX XX Coca XXXX’s XXXXXXXXXX XXXXXXXXXX in the United States. Outsourced processes XXX also closer to captive XXXX XXXXXXX, XXXXX XXXXXXXXXXX XXXXXXXXXXXX.
XXXXXXXX XXXXX XXXXXXXX , or XXXXXXXX XXXXX add, XX a measure XX XXX XXXXXXX’s XXXXXX performance based on XXXXXXXXX the cost XX XXXXXXX from its operating or economic XXXXXX.
Economic XXXXX Creation = Economic Value Add = Price of XXXXXXX - XXXXX = Product price - raw material price - manufacturing XXXX - packaging XXXX - XXXXXXXXXXXX XXXX - XXXXX and XXXXXXXXX cost - overhead XXXXXXXXXX - production XXXXXXXX XXXX - XXXXXXXX pay = 20 - XX - X - 1 - 1 - X - X - X - X = X
XXXXXXXXXX
Yoffie, XXXXX X., and XXXXXXX Mack."Wal-XXXX, 2005."XXXXXXX XXXXXXXX XXXXXX Case XXX-460, XXXXXXX 2005. (Revised April XXXX.)
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