Internal Analysis of Wall-Mart Case Study Example | Topics and Well Written Essays - 1500 words

Internal Analysis of Wall-Mart - Case Study Example The paper also details how Wal-Mart can guard against the internal weaknesses and avoid the external threats. Wal-Mart Stores is the number one retail store in the World in volume. The company has more than 7,250 stores," including about 975 discount stores, 2,800 combination discount and grocery stores (Wal-Mart Supercenters in the US and ASDA in the UK), and 590 warehouse stores (SAM'S CLUB)". (Hoovers. Com) The Company is the number one retail store in Canada and Mexico and owns 95 percent stakes in the largest Japanese retailer SEIYU. The company is operating in most parts of Asia, Europe and South America. The company has achieved a Turnover of $ 378,799 million for the fiscal year ended January 2008 employing about 2,100,000 people. In the area of management Wal-Mart has been a committed entity in respect of its responsibilities towards customers as well as communities. The corporate structure of Wal-Mart has three core values of respect for the individual, service to their customers, and striving for excellence. These values have enabled the company achieve the fete of the largest retailer of the world. The marketing strategy in the form of Every Day Low Price (EDLP) strategy has been found to be successful in enhancing the sales growth. The customer oriented approach is one other core value of the company. With ten different divisions of the company available in one place the customer can have a one stop shopping experience which is one of the core strengths of the company. On the financial aspects the company has shown consistent sales and profitability growth during the past years. The company has all its financial ratios indicating its financial strength. The stock price movements are yet another indication of the financial strength of the company. The company has strong and well oriented distribution networks, well equipped and mechanized distribution centers which provide an efficient supply chain management and enormous economies of scale in the operations of the company. The company employs the latest and most sophisticated information and communication technology which enables the company to operate with a clock like precision. Weaknesses The absence of a proper and formal mission statement is the fundamental weakness of the company. The company's mission statement does not provide the necessary definition of their business and does not also provide the direction for the employees. The company has not recognized diversity in the employment with few females in the top management and few minorities. This is a dent in the corporate image of the company. Non-unionization is another weakness of the company. The employees do not have a forum to raise their concerns and hence the employees lack bargaining power. On the marketing side the company has the biggest weakness of continuous expansion. The company has acquired the hatred of many social organizations in smaller towns across United Stated because of the adverse economic impact the company is creating on smaller towns and the trade within these towns. The major complaint in the operation of the store is the increased average time that an