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Walmart T5
Walmart T5
Walmart T5
Walmart T5
Walmart T5
Walmart T5
Walmart T5
Walmart T5
Walmart T5
Walmart T5
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Walmart T5

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  1. Wal-Mart Case Analysis SHAKY
  2.  
  3. PEST Analysis Political Change Economic Change Social Change Technological Change Nature of Change Impact of Change Opportunities Threats Strategic Response Government standard Improve consumer’s confidence Discount retailer expansion Increase presence in southwest High oil prices & Increase shipping costs Lower profit margin Centralized Distribution Unemployment More job seekers Cheap labor Employee Turnover Lower fixed costs Inventory MGMT Increase inventory turnover Automation Centralize
  4. Political Analysis
  5. Political Analysis
  6. Economic Analysis - Strategic distribution allowed Wal-Mart to have lower shipping costs during a time of rising oil prices
  7. Social Analysis <ul><li>Wal-Mart organized during period of high unemployment </li></ul><ul><li>Average unemployment rate during1974-1985 was 7.5% </li></ul><ul><li>Heavy communication between top management </li></ul><ul><li>Incentives to keep employees </li></ul><ul><ul><li>Employees received percentage of shrinkage improvement </li></ul></ul><ul><ul><li>Profit sharing for store managers </li></ul></ul>
  8. Technological Analysis <ul><li>Efficient inventory control processes led to better inventory turnover </li></ul><ul><li>Pricing strategy determined by store location and research </li></ul><ul><li>Satellite network to reduce telecommunication costs </li></ul><ul><li>Results- Nearly double industry average on ROE and sales growth </li></ul>
  9. Wal-Mart Conclusions <ul><li>Firm’s strengths were distribution, inventory management, and communication between upper management </li></ul><ul><li>Wal-Mart embraced employee input and gave employees incentives to care about store performance which was unique compared to rivals </li></ul><ul><li>Firm’s weakness were stores were concentrated in one region of the country however this provided lower rent, cheaper distribution costs, and the greatest population growth which they turned into an advantage </li></ul><ul><li>Wal-Mart’s operation was very lean with little long term debt providing maximum value to the shareholders </li></ul>
  10. Thank you!

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