Professional Documents
Culture Documents
INTRODUCTION
Perform
External
Audit
Develop
Vision and
Mission
Statement
-OT
-PESTLE
-Porter 5 Forces of competition
-EFE Matrix
Establish
Long Term
Objectives
Perform
Internal
Audit
-SW
- IFE Matrix
Strategy Formulation
Generate,
Evaluate
and Select
Strategies
-Value Chain
Analysis
- McKinseys
Implemen7S
t
Strategies
-TOWS
-IE Matrix
- BCG Matrix
- SPACE Matrix
- Ansoff Matrix
- Grand
Strategy
Strategy
Implementation
Measure
and
Evaluate
Performanc
e
Strategy Map
Winning
Strategy
Ishikawa Fish
bone diagram
Pareto 80-20
Principle
Strategy
2
Evaluation
1.
2.
3.
4.
5.
6.
STRENGTHS
WEAKNESSES
Cost leadership strategy
1. Discrimination against women and
Strong market position
minorities
Usefulness
of
SWOT
analysis:
Diversified products and brand 2. Employees were treated poorly
To identify the external
portfolios
3. High employee
turnover
and internal
Excellent customer service
4. Illegal workforce
factors
that
might
affect the future
High efficiency of supply chain
5. Violation of state laws
performance
of any business.
Possess cutting
edge technology
6. Weak response towards public
Multiple store
formatinformation useful
bashing
Provide
in matching the
Strategic locations
7. Critics from the public
firms
resources
and
capabilities to the
Customer
friendly
store
environment
competitive
environment
where
it
OPPORTUNITIES
THREATS
operates.
Increasing
population
in 1. Economic crisis and inflation
To
analyze
the
capacity
to protection
move forward
developing countries
2. Trade
by countries
Increasing and
demand
foradvancing
lower 3. Increasing
address
issues. costs of operation and
priced groceries
expansion
Penetrate foreign markets by 4. Foreign exchange risks
acquisition
5. Aggressive competition
Expansion in the US
6. Increasing manpower costs
Green initiatives
7. Volatility in commodity prices
3
Increased CSR initiatives
8. Low barrier to entry
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
OPPORTUNITIES
Increasing population in developing
countries
Increasing demand for lower priced
groceries
Penetrate
foreign
markets
by
acquisition
Expansion in the US
Green initiatives
Increased CSR initiatives
Improve human resource practices
Online grocery shopping
Efficient supply chain for expansion
and reduce costs
THREATS
Economic crisis and inflation
Trade protection by countries
Increasing costs of operation and
expansion
Foreign exchange risks
Aggressive competition
Increasing manpower costs
Volatility in commodity prices
Low barrier to entry
Perception of low price as low quality
Resistance on new stores opening
1.
2.
3.
4.
5.
6.
7.
8.
9.
STRENGTHS
Cost leadership strategy
Strong market position
Diversified
products
and
brand
portfolios
Excellent customer service
High efficiency of supply chain
Possess cutting edge technology
Multiple store format
Strategic locations
Customer friendly store environment
SO STRATEGIES
Growth by expansion in the US
(S1,S2,S3,S5,S7,S8,O1,O2,O4)
Increase profit margin (S1,S7,O8)
Dominate the retail market in the US
(S1,S2,O1,O2,O8)
Improve
consumers
experience
(S3,S4,S9,O6,O7)
Utilise strong brand to offer discount
and attracts new and more customers
(S1,S2,O8)
Information
system
allow
online
shopping and order (S6,O7)
Expand globally and market penetration
(S2,O1,O2,O3,O4)
ST STRATEGIES
Continue to increase market share
through
market
expansion
and
penetration (S2,S5,S8)
Increase customer loyalty through value
added services (S4,S5,S7,S8,S9,T1,T5,T8)
Win over competitors with low price
(S1,S2,S5,T1,T3,T5,T6,T7,T8
Wal-Mart can offer affordable products
compared
to
its
competitors
(S1,S2,S5,T5,T8,T9)
Leverage on technology to deliver more
product
information
to
customers
1.
2.
3.
4.
5.
6.
7.
WEAKNESSES
Discrimination against women and
minorities
Employees were treated poorly
High employee turnover
Illegal workforce
Violation of state laws
Weak
response
towards
public
bashing
Critics from the public
WO STRATEGIES
Market expansion to get more customers
and market share (W1,O1,O2,O3,O4)
Take care and improve employees
morale and benefits (W1,W2,W3,O6,O7)
Rebuild
positive
brand
image
(W1,W2,W3,W4,W5,W6,W7,O5,O6,O7)
WT STRATEGIES
Reduce employee turnover rate through
improved
employee
welfare
(W1,W2,W4,T6)
Refrain from unethical practices to
reduce negative public perception in
order to reduce resistance on market
expansion (W1,W2,W3,W5,W6,W7,T10)
Increase CSR to create positive brand
image and sustain the
brand as a
market
leader
in
retailing
4
(W1,W2,W3,W4,W5,W6,W7,T2,T4,T10)
Adapt to local culture in order to gain
Political
ro
c
Ma
en
on
r
i
v
Environment
t
en
Economic
Legal
o
r
c
Mi
Social
nm
o
ir
v
en
t
en
Technology
5
TECHNOLOGY
LEGAL
ENVIRONMEN
T
SOCIAL
ECONOMIC
POLITICAL
Bargaining Power of
Suppliers (Low)
Threats of Substitutes
(Low)
Online shopping
Question
Mark
Market Growth
Star
Co
w
Low
High
Market
Share
Do
g
Low
10
+6 to
+1
STABILITY POSITION
-6 to -1
1) Liquidity
1) Rate of infation
-3
2) Profitability
2) Demand elasticity
-3
3) Cash Flow
3) Technological changes
-2
4) Leverage
4) Unemployment rate
-2
-2
Average
5.2
Total Y-Axis score
COMPETITIVE POSITION
Average
-2.4
2.8
-6 to -1
INDUSTRY POSITION
+6 to
+1
1) Product quality
-2
1) Growth potential
2) Market share
-1
2) Financial stability
3) Customer loyalty
-1
-1
4) Profit potential
5) Technology know-how
-1
5) Resources utilization
11
COMPETIT
IVE
POSITION
FINANCIAL
POSITION
Market Penetration
Market Development
Product Development
Related Diversification
Conservative
2.
8
Defensive
Retrenchment
Divestiture
Liquidation
STABILITY
POSITION
Vertical/Horizontal Integration
Market Penetration
Market Development
Product Development
Diversification
Aggressive
INDUST
RY
4.
POSITIO
4
Competitive
N
Vertical/Horizontal Integration
Market Penetration
Market Development
Product Development
12
Quadrant
WEAK
COMPETITIV 2
E POSITION Quadrant
3Retrenchment
Related/Unrelated Diversification
Conglomerate Diversification
Liquidation divestiture
Product Development
Market Development
Market Penetration
Forward/Backward Integration
Concentric Diversification
Quadrant
1
STRONG
COMPETITIV
E POSITION
Quadrant
4 Related/Unrelated Diversification
Horizontal/Vertical Diversification
Conglomerate Diversification
Joint Ventures
SLOW MARKET
GROWTH
IF
4
4
1
2
0.4
0.2
0.05
0.1
0.05
0.05
3
3
0.15
0.15
0.10
4
0.4
WEIGH RATI WEIGHTED
T (%) NG
SCORE
0.10
4
0.4
0.05
0.15
0.05
0.05
0.05
0.05
4
2
3
2
0.2
0.1
0.15
0.1
0.05
0.05
1
2
0.05
0.1
0.05
0.15
0.05
EF
140.2
IE Matrix
EFE
4.00
3.0
5
1.00
I
Grow
II
And
III
Build
IV
Hold
V
And
VI
Maintain
VII
Harvest
VIII
And
IX
Divest
4.0
IFE: 2.65
0
2.6
5
1.0
0
Market
penetration
Product
development
Backward/forwa
rd/
horizontal
integration
IFE
15
NEW PRODUCTS
EXISTIN
Market Penetration
Product Development
G
(Low Risk)
(Medium Risk)
MARKET
A strategic planning tool that links an organizations marketing
strategy
withMarket
its general
strategic direction Diversification
NEW
Development
Market
MARKET
SetsPenetration
out aims and
objectives
(Medium
Risk)
(High Risk)
Cost-efficient operations and everyday low prices
Provides framework enabling growth opportunities to be identified
Multiple store formats: Discount stores, Supercenters, Sams Club, and Neighbourhood
Analyzes
the risk associated with each quadrant
Markets
Relationships with
bargain
for bottom price,
efficient
for production
delivery
Highlights
thesuppliers:
risk that
a particular
growth
strategy
that and
cause
you
Product
Use ofDevelopment
cutting-edge technology: electronic product code (RFID system), retailing
move
to other quadrant
technologies
Astute merchandising: experimenting with new merchandising techniques, implemented in
Offers
Distribution
centre operations:
one
distribution
centre serves
75-100 stores,
high
efficiency
a structured
way
to
assess
potential
strategies
for
growth
other
stores
if
worked
well
(store
layouts,
merchandise
displays,
store
colour
schemes,
(sorting, repacking, and loading to trucks), truck feets fuel efficiency
Shows
merchandise
and sales
howselection,
to develop
a promotion
strategytechniques)
for altering market position and
Relationship with suppliers: selected those who dominant in their category and committed
improve
product range
to R&D, recyclable packaging on merchandise displays and product mix, automatic
reordering arrangement for high demand new products
Market
Development
Customer
service and pleasant shopping experience: aggressive hospitality, friendly,
folksy
attitude,
Satisfaction
Guaranteed
Expansion
into new
geographic
markets: opening stores in small towns surrounding
targeted metropolitan area before moving into itself in U.S.
Acquisitions to enter foreign country markets: Mexico, Brazil, Japan, China, South Korea,
Diversification
etc.
17
SCOP
Narrow E
Broad
DIFFERENTIATION
GENERIC
COMPETITI
VE
STRATEGY
FOCOS COST
FOCUS
DIFFERENTIATION
Differentiation
COST LEADERSHIP
Walmarts position
18
Maintain focus on brand & concept, bringing store-level concepts back to top (run from a national
headquarter).
SUPPORT ACTIVITIES
Focus on the individual employees empowering them as associates and equal feedback
Leading-edge, highly developed IT systems completely integrated with entire supply chain
Real-time access to sales information from all stores Electronic data interchange (EDI)
PRIMARY
ACTIVITIES
INBOUND
LOGISTICS
Use minimum
amount of links
in supply chain
Forming
strategic
partnerships
with vendors
long term
perspective &
OPERATIONS
Divided into 3
reportable
segments;
Walmart US,
Walmart
International,
Sams Club
Only real-time
inventory &
sales tracking
OUTBOUND
LOGISTIC
Runs complex
outbound lgstc
-- due to scope
& size of
operation
Strive to
optimize
outbound
routing & load
MARKRTING &
SALES
Always Low
Prices. Always.
Attempts to link
brand image
with abundant
product
assortment,
highly
competitive
SERVICES
Welcoming
environment
with Greeters
Focus on
improving
customer
service
Provide higher
wages & more
training for shop 19
PROFIT MARGIN
PROCUREMENT
Best Retailer to do Business With could provide greater operating efficiencies by supplying realtime data
How
Media
Employee complaint
Hire Illegal immigrants
Us Labour Law
Low wages
Cost Control
Discrimination
Cost Control
Poor HR management
Unfair pay
Poor HR management
Poor recruitment process
Poor HR
Lack Management
Lack Management
management
Control
Lack Management Control
Control
Who
Employees
Where
United States
Bad Image
Save cost
control
Lack Management
Cost control
No standard SOP
Control
Wrong direction
Why
Bad Reputation
20
Pareto Analysis
Factors
Frequenc
y
Weight
Adj. Freq.
Percentag
e
Cumulativ
e
40
200
43%
43%
Poor HR Management
30
120
26%
69%
Cost Control
20
80
17%
86%
Wrong Direction
15
30
7%
93%
10
20
4%
97%
13
13
Others
250
86%
200
150
100
50
0
93%
97%
3% 100% 100%
100%
80%
69%
60%
43%
200
40%
120
80
Cost Control
20%
30
20
13
0%
Space Matrix
Value Chain Analysis
SWOT
TOWS
PESTLE
IFE, EFE, IE
Matrix
PORTERS 5
FORCES
Competitive Advantage
Test
However,
the
companys
internal
strengths need to be maximized and
leveraged to counter weaknesses.
Wal-mart also needs to fully utilize its
opportunities and eliminate threats. The
company has strong financials, great
customers satisfaction, highly innovative
BUT still needs a lot of improvements in
terms of weak in HR policies. Future
strategies
to
purse
are
Market
WINNING
STRATEGY
22
Influence
Power
High
Low
3.
Key Player
Manage Closely
High Power, High Interest
Government, Customers
Least Important
Monitor
Low Power, Low Interest
Shareholders,
Managements, Employees
Show Consideration
Keep Informed
Low Power, High Interest
23
High
Q19. If Walmart were to join venture with a local player like Giant, what would be the consideration for shared values analysis?
7S
Company
Issue
Risk
Alignment
Compliance
Strategy
Walmart
Minimal effort in
synchronization
Upgrade barcode
system to RFID. Keep/
abolish storeroom
Giant
Structure
System
Shared Value
Style
Walmart
Hierarchical
Giant
Hierarchical
Walmart
Giant
[High Risk]
Employee from both
company might have
difficulty in
communication.
Extensive training
needed for former
NSK employee along
with incentive for
good performance
No.
Rehiring might be a
cheaper option.
[High Risk]
NSK employee will
need an upgrade in
knowledge to work
effectively with
Walmart employee
More on-the-job
training must be
made available
Yes.
Employee can be
given chance to learn
more and evaluated
based on their
improvement.
24
Walmart
Giant
Walmart
Giant
Staff
Skill
Walmart
Giant
Walmart
Giant
Q20. Prepare the strategy map for the new entity in Malaysia. Please
justify your vision, mission and objectives.
Increase Profit
Lower cost
Increase
Customer Base
Increase
Customer
Satisfaction
Increase
Service
Efficiency
Customer
Internal
Learning and
growth
Increase
Inventory
Efficiency
Increase
overall worker
skill level
25
21) Discuss what are the factors that you need to consider
from time to time in order to make the new entity remain
competitive
Cost
Price
Product Range
Product Quality
Service Quality
26
Increase Profit
Profit Margin
>20%
Lower Cost
Customer
Internal
Streamline
operation
Increase operating
efficiency
Increase
customer Base
Market
Share
Customer
> 60% in
Malaysia
Increase
Customer
Satisfaction
Complaint
Rate
< 0.05%
Adopt Quality
Management
Increase
Inventory
Efficiency
Inventory
Cost
< 10% of
total cost
Reduce dependency
on storeroom
Just in time
structure
Increase service
efficiency
Customer
Que time
< 3min on
average
Increase number of
counter
27
Employee
There should not be any barriers between the doers and the
decision makers.
Based on
past
experien
ce,
pattern
and
trend
Inte
n
Stra ded
teg
y
Non
realized
strategies
Environmen
t changes
Deliberate +
Emergent =
deliberately
emergent
De
l i be
rat
Str
e
ate
gy
Realized
Strategy
Em
St er
ra ge
te nt
gi
es
29
IMPORTANCE
Environmental Scanning
Strategy Formulation
Strategy Implementation
RECOMMENDATIONS
To develop better HR policies
Risk: Increase cost vs Better public image
CONCLUSION
31
THANK YOU
32