Wal-Mart - 2000

Vision Statement
To become the worldwide leader in
retailing

Mission Statement Components

1. Customers
2. Products or services
3. Markets
4. Technology
5. Concern for survival, profitability, growth
6. Philosophy
7. Self-concept
8. Concern for public image
9. Concern for employees

Mission Statement
Our fist responsibility is to provide all
consumers (1) the best products and services
with guaranteed satisfaction under one roof.
Wal-mart provides a wide array of products
like toys, electronics, groceries, jewelry,
ladies, men, and childrens apparel, and hard
goods (2) at reasonable prices. We will
continue to offer scholarships to deserving
high-school graduates (8) in hopes of
providing students with a well-deserved
education.

Consumers have been conveniently provided

not only with the use of on-line shopping (4)
to show without ever leaving home, but also
with the concept of one-stop shopping. The
Wal-mart team is devoted to everything that
Wal-mart has accomplished as a universal
competitor (3). We are dedicated in recruiting
rewarding, and retaining employees of good
moral standing (9) by providing benefits for
excellent performance, providing clean
environments to work in, and by providing
equal-opportunity for all individuals (7).

We will continue to offer the highest

quality products at the lowest price (6)
to strive to be the best in the retail
industry (5).

Opportunities
Consumers want ease of shopping
Internet shopping growing
Dollar value increasing
Similar shopping patterns worldwide
Retail sales expected to increase
Environment conscious consumers
Elderly population growing
Asian market virtually untapped by retail
European Market untapped by retail

Threats
Regulation of Wal-Mart pharmacies
Small towns do not want entry of Wal-Mart
Bad media exposure for Kathie Lee Brand
Variety of competition nationally, regionally and
locally
Substitute products more easily because of intense
competition

Competitive Profile Matrix

Critical Success
Factors
Market Share
Price
Competitiveness
Financial Position
Product Quality
Consumer Loyalty
Total

Weight
0.20
0.30
0.10
0.20
0.20
1.00

Wal-Mart
Rating
Weighted
Score
3
0.60
4
1.20
4
2
2

0.40
0.40
0.40
3.00

K-Mart
Rating
Weighted
Score
2
0.40
2
0.60
2
2
2

0.20
0.40
0.40
2.00

JC Penny
Rating
Weighted Score
2
1

0.40
0.30

2
3
2

0.20
0.60
0.40
1.90

David: pag. 112, tabla 3-10

Weight: factores que influyen en el xito de cada empresa entre ms peso ms importante
Rating: 1: debilidad ppal; 2;debilidad menor; 3: fortaleza menor; 4: fortaleza ppal
El resultado final: fortalezas relativas de las empresas la ms fuerte: Wal Mart

External Factor Evaluation (EFE) Matrix

Key External Factors
Opportunities
Consumers want ease of shopping
Internet shopping growing
Dollar value increasing
Similar shopping patterns worldwide
Retail sales expected to increase
Environment conscious consumers
Elderly population growing
Asian market virtually untapped by retail
European Market untapped by retail
Threats
Regulation of Wal-Mart pharmacies
Small towns do not want entry of Wal-Mart
Bad media exposure for Kathie Lee Brand
Variety of competition nationally, regionally and
locally
Substitute products more easily because of intense
competition
TOTAL

Weight

Rating

Weighted Score

0.12500
0.17500
0.01250
0.00625
0.00625
0.01250
0.05000
0.01250
0.10000

4
2
2
3
2
3
3
1
2

0.50
0.35
0.03
0.02
0.01
0.04
0.15
0.01
0.20

0.10
0.05
0.05
0.05

2
3
3
1

0.20
0.15
0.15
0.05

0.10

0.20

1.00

2.30

David: pag 111, tabla 3-9

Weight: peso relativo
Rating: 4: respuesta excelente; 3: respuesta por encima del promedio; 2: respuesta de nivel
promedio; 1: respuesta deficiente
Weighted Score: debera estar en el promedio que es 2.5 en este caso est por debajo

Strengths
Customer oriented
SAMS Club customers able to buy in bulk
Supercenters offer one stop shopping
Satisfaction guaranteed programs promoting customer
goodwill
Buy from local merchants when possible
Stock ownership and profit-sharing with employees
Leads industry in information technology
Ongoing development of its employees
Strong community involvement

Weaknesses
No formal mission statement
Membership only for SAMS Club
Keep poor performing employees on hand
Old fashioned store policies
Few women and minorities in top
management

Internal factor evaluation Model (IFE) Matrix

Key Internal Factors
Strengths
Customer oriented
SAMS Club customers able to buy in bulk
Supercenters offer one stop shopping
Satisfaction guaranteed programs promoting customer
goodwill
Buy from local merchants when possible
Stock ownership and profit-sharing with employees
Leads industry in information technology
Ongoing development of its employees
Strong community involvement
Weaknesses
No formal mission statement
Membership only for SAMS Club
Keep poor performing employees on hand
Old fashioned store policies
Few women and minorities in top management
TOTAL

Weight

Rating

Weighted
Score

0.250
0.100
0.100
0.025

4
3
4
3

1.00
0.30
0.40
0.08

0.025
0.025
0.025
0.100
0.025

3
4
4
4
3

0.08
0.10
0.10
0.40
0.08

0.012
0.100
0.100
0.013
0.100
1.00

2
1
1
2
1

0.02
0.10
0.10
0.03
0.10
2.88

David: pag 151, tabla 4-7

Weight: factores que influyen en el xito de cada empresa entre ms peso ms importante
Rating: para fortalezas: 3: fortaleza menor; 4 fortaleza mayor
Rating: para debilidades: 1: debilidad mayor; 2;debilidad menor

TOWS Analysis
Strengths
1. Customer oriented
2. SAMs Club consumers able to
buy in bulk
3. Supercenters offer one stop
shopping
4. Satisfaction guaranteed
programs promoting customer
goodwill
5. Buy from local merchants when
possible
6. Stock ownership and profitsharing with employees
7. Leads industry in information
technology
8. Ongoing development of its
employees
9. Strong community involvement

Weaknesses
1. No formal mission statement
2. Membership only for SAMS
Club
3. Keep poor performing
employees on hand
4. Old fashioned store policies
5. Few women and minorities in
top management

TOWS Analysis continued

Opportunities
1. Consumers wan ease of
shopping
2. Internet shopping growing
3. Dollar value increasing
4. Similar shopping patterns
worldwide
5. Retail sales expected to increase
6. Environment conscious
consumers
7. Elderly population growing
8. Asian Market virtually untapped
by retail
9. European Market untapped by
retail
Threats
1. Regulation of Wal-Mart
pharmacies
2. Small towns do not want entry
of Wal-Mart
3. Bad media exposure for Kathie
Lee Brand
4. Variety of competition
nationally, regionally and
locally
5. Substitute products more easily
because of intense competition

S-O Strategies
1. Advertise more for shopping
on-line (S8, O2)
2.

Expand internationally because

of similar shopping patterns
(S3, O4, O8)

S-T Strategies
1. Buy from local merchants to
promote unity in the community
(S5, T4)
2.

Build more Supercenters for the

increased demand for one stop
shopping (S3, T4)

W-O Strategies
1. Improve employment
techniques to hire and keep the
best performing employees
(W3, W5, O6)

W-T Strategies
1. Allow consumers to buy in
smaller bulk without having
membership to SAMS Club (W2,
T5)

SPACE Matrix
Internal strategic position
Financial strength
Environmental stability

+5
-2

+1 best to +6 worst
-6 worst to 1 best

Y axis: 5 + (-2) = 3

External strategic position

Competitive advantage
Industry strength

-2
+6

-6 unstable to 1 stable
+1 best to +6 worst

X axis: 6 + (-2) = 4

Conservative

FS

Aggressive

Fortaleza Financiera

Dimensiones internas:
Fortaleza financiera y
Ventaja competitiva

Fortaleza de la Industria

CA

IS

Ventaja Competitiva

Defensive

ES

Estabilidad Ambiental

Competitive

Dimensiones externas:
Estabilidad ambiental y
Fortaleza industria

Segn los calculos (David pg 204) con base en los factores de EFE e EFI
Determinan en esta matriz si la estrategia de la empresa debe
Ser de tipo CONSERVADORA, AGRESIVA, DEFENSIVA O COMPETITIVA

SPACE Matrix
Internal strategic position
Financial strength
Environmental stability

+5
-2

+1 best to +6 worst
-6 worst to 1 best

Y axis: 5 + (-2) = 3

External strategic position

Competitive advantage
Industry strength

-2
+6

-6 unstable to 1 stable
+1 best to +6 worst

X axis: 6 + (-2) = 4

Conservative

FortalezaFSFinanciera

Conservadora: permanecer cerca de sus

capacidades y no afrontar riesgos:
Tipos de estrategias: penetracion y dllo de
mdos y productos, y diversificacin
concntrica
CA

Ventaja Competitiva
Defensiva: se debe centrar en disminuir sus
debilidades internas y evitar amanazas
externas; tipos de estrategias: recorte de
gastos, liquidacin y diversificacin
concntrica

Defensive

Aggressive

Agrasiva: aprovechar fortalezas para

aprovechar oportunidades externas, superrar
debilidades internas y evitar amenazas;
Tipos de estrategias: penetracin y dllo de
mdos y productos, integracin hacia adelante
y atrs, diversifcaciones en conglomerado o
concentrica, IS
Fortaleza de la Industria

Competitiva: uso de estrategias competitivas

como integracion hacia adelante o atrs,
pentracion demdo y dllo de mdos y productos
y alianzas estrategicas
ES

Estabilidad Ambiental

Competitive

The Internal-External(IE)
Matrix
Crecer y
construir

Conservar y
mantener
Cosechar o
Enajenar

Quantitative Strategic Planning Model [QSPM]

Key Internal Factors
Weight
Strengths
Customer oriented
SAMSS club consumers able to buy in bulk
Supercenters offer one stop shopping
Customer goodwill
Buy from local merchants when possible
Stock ownership and profit sharing with employees
Leads industry in information technology
Ongoing development of its employees
Strong community involvement
Weaknesses
No formal mission statement
Membership only for SAMS Club
Keep poor performing employees on hand
Old fashioned store policies
Few women and minorities in top management
SUBTOTAL

0.25
0.10
0.10
0.03
0.03
0.03
0.03
0.10
0.03
0.01
0.10
0.10
0.01
0.10
1.00

Strategic Alternatives
Build additional
Improve
Supercenters
SAMS Club
nationwide and
operations
worldwide
AS
TAS
AS
TAS
--------1.00
0.10
4.00
0.40
4.00
0.40
1.00
0.10
------------------------2.00
0.05
3.00
0.08
2.00
0.20
1.00
0.10
----------1.00
1.00
1.00
1.00

--0.10
0.10
0.01
0.10
1.06

--2.00
2.00
2.00
2.00

--0.20
0.20
0.02
0.20
1.30

David:pg 217. tabla 6-6

Esta matriz permite evaluar y comparar DIF ESTRATEGIAS ENTRE SI:
Weight: el mismo dado en EFE e EFI
AS: Puntajes de grado de atraccin: afecta este factor la seleccin de las estrategias?: si la Respuesta es positiva
entonces la estrategia debe compararse en relacin a ese factor; grado de atraccin: 1 sin atractivo, 2 algo atractivo,
3 mas o menos atractiv, 4 muy atractivo; GUION O NADA: la respuesta es NEGATIVA
TAS: Puntaje total de grado de atraccin: EL MAYOR PUNTAJE DAR LA MEJOR ESTRATEGIA

QSPM continued
Key External Factors

Improve SAMS
Club operations

0.13
0.18
0.01
0.01
0.01
0.01
0.05
0.01
0.10

Build additional
Supercenters
nationwide and
worldwide
AS
TAS
4.00
0.50
3.00
0.53
3.00
0.04
4.00
0.03
3.00
0.02
--------4.00
0.05
4.00
0.40

AS
3.00
4.00
2.00
3.00
2.00
----3.00
3.00

TAS
0.38
0.70
0.03
0.02
0.01
----0.04
0.30

0.10
0.15
0.08
0.15
0.03

2.00
3.00
--3.00
---

1.00
2.00
--2.00
---

0.10
0.30
--0.30
---

Weight

Opportunities
Consumers want ease of shopping
Internet shopping growing
Dollar value increasing
Similar shopping patterns worldwide
Retail sales expected to increase
Environmental conscious consumers
Elderly population growing
Asian Market virtually untapped by retail
European Market untapped by retail
Threats
Regulation of Wal-Mart pharmacies
Small towns do not want entry of Wal-Mart
Bad media exposure for Kathie Lee Brand
Variety of competition nationally, regionally and locally
Substitute products more easily because of intense
competition
SUBTOTAL
SUM TOTAL ATTRACTIVENESS SCORE

1.00

0.20
0.45
--0.45
--2.67
3.72

2.17
3.47