Course:- Managerial Policy Group Members Saeed Ahmed 10603 Tariq Mehmood 56908 M Sikandar Iqbal 10952

1. PAF KIET
SUBJECT: MANAGERIAL POLICY
ASSIGNMENT # 03 (CASE STUDY)
WAL-MART RETAIL BUSINESS STRATEGY
CLASS: MSMS
GROUP MEMBERS
SAEED AHMED 10603
TARIQ MEHMOOD 56908
SIKANDAR IQBAL 10952
SUBMITED TO:
SIR ZEESHAN HUSSAIN

2. EXTERNAL DATA
External
(O & T)
Macro
Economic
01- World economy fallen down as WALMART of sales growth only
11%.(E-T)
40-Company cannot be stable in ARGENTINA AND BRAZIL because of
economy fluctuation.(E-T)
Technological
22-EDI sytem to track po,invoices,payments and inventories.(T-O)
23-RFID systemfor goods packaging.(T-O)
25-SCAN N PAY system for individual customer payments.(T-O)
28-MCAP systemfor product category assortment.(T-O)
31-WAL-MART switch simple inventory management to DATA mining.(T-
O)
Social
24-Company was working as a teacher to taught about cost control and
efficiency.(S-O)
Political/Legal 04- Forty Court cases by employees getting no overtime payment.(L-T)
Demographic 15-WalmarT have stores in 50 states of AMERICA.(D-O)
Global
02-Walmart cheers in faraway places like Germany, south Korea, china
and united kingdom.(G-O)
03-World largest and most powerful retailer.(G-O)
06-Started retail business internationally.(G-O)
10-WALMART operated 4,750 stores till 1969.(G-O)
39-WAL-MART started money transfer service.(G-O)
Micro
Competitor
08-US nationality .(C-O)
19-WALMAR wins by in store items.(C-O)
29-WALMART accounted 16% sale of NEWELLS sales in 2003.(C-O)
31- WALMART accounted 26% sale of RAYOVAC sales in 2003.(C-O)
41-Company could not survive in GERMANY having multiple
issues.(C-T)
Industry
34-WAL-MART was the largest employer in private industry worldwide in
2004.(I-O)
44-World largest retailer.(I-O)

3. INTERNAL DATA
Internal
(S & W)
Fin 11-Capital investment on rural location to roll out retail business.(F-S)
HR
05-Gender discrimination.(W)
12-Employement of nearby residential was a paradise for them.(S)
13-Best management practices.(S)
27-Company deputed audit teams at manufacturer locations FOR
COMPLIANCE (S)
35-Company had 1.3 million associates in 2004.(S)
36-Walmart has received criticisms and lawsuits several times
regarding its workforce. Low wages, inadequate healthcare, and poor
working conditions are few of the issues that have been publically
criticized.(W)
Marketing
16-Limited advertisement.(M-W)
17-Company launched dog food (M-S)
21-Product ranging,quality,shipping,stocking and in store displays.(M-S)
33-Supercenters opened 24 hours a day.(M-S)
Procurement
37-The acquisition strategy paid off in locations such as united
kingdom.(P-S)
38-Company increased its ownership over the time in
US.(P-S)
42-Company purchased real state in china for
warehouse.(P-S)
Sale
07-Sales of 244.5 billion dollar.(S-S)
17-Walmart responsible to sale 35% all pet food,24% all toothpaste and
largest volume of jewellery,groceries,cd,dvd,toys gun and etc.(S-S)
18-WALMART was the world biggest dog food seller.(S-S)
20-40% Sales of WALMART attributable to in store items.(S-S)
43-20 billion doller sale as export by CHINA.(S-S)
45-WAL-MART proven metal in the globe by generating revenue as
doubled from 1999 to 2003.(S-S)
Operation/Mfg
09-WALMART opened 18 stores.(O-S)
13-Establish own logistic operation.(O-S)
26-Scorecard used to track performance of supplier in a smooth
way.(O-S)
30-Poorly managed mfg. operations.(MFG-Weakness)
32-WAL-MART operated 4 different format of stores.(O-S)
1-discount stores
2-supercenters
3-neighborhood markets

4. 4-sam`s club
SWOT ANALYSIS
SR. STRENGTH
1
11-Capital investment on rural location to roll out retail business.(F-S)
2
12-Employement of nearby residential was a paradise for them.(S)
3
13-Best management practices.(S)
4
27-Company deputed audit teams at manufacturer locations FOR COMPLIANCE (S)
5
35-Company had 1.3 million associates in 2004.(S)
6
17-Company launched dog food (M-S)
7
21-Product ranging,quality,shipping,stocking and in store displays.(M-S)
8 33-Supercenters opened 24 hours a day.(M-S)
9
37-The acquisition strategy paid off in locations such as united kingdom.(P-S)
10
38-Company increased its ownership over the time in US.(P-S)
11
42-Company purchased real state in china for warehouse.(P-S)
12
07-Sales of 244.5 billion dollar.(S-S)
13
17-Walmart responsible to sale 35% all pet food,24% all toothpaste and largest volume of jewellery,
groceries, cd, dvd, toys, guns and etc.(S-S
14
18-WALMART was the world biggest dog food seller.(S-S)
15 20-40% Sales of WALMART attributable to in store items.(S-S)
16
45-WAL-MART proven metal in the globe by generating revenue as doubled from 1999 to 2003.(S-S)
17
09-WALMART opened 18 stores.(O-S)
18
13-Establish own logistic operation.(O-S)
19 26-Scorecard used to track performance of supplier in a smooth way.(O-S
20
32-WAL-MART operated 4 different format of stores.(O-S)
1-discount stores 2-supercenters 3-neighborhood markets 4-sam`s club

5. SR. WEAKNESS
1
05-Gender discrimination.(W)
2
36-Walmart has received criticisms and lawsuits several times regarding its workforce. Low wages,
inadequate healthcare, and poor working conditions are few of the issues that have been publically
criticized.(W)
3
16-Limited advertisement.(M-W)
4
30-Poorly managed mfg. operations.(MFG-Weakness)
SR. OPPORTUNITY
1
22-EDI system to track po,invoices,payments and inventories.(T-O)
2
23-RFID systemfor goods packaging.(T-O)
3
25-SCAN N PAY system for individual customer payments.(T-O)
4
28-MCAP systemfor product category assortment.(T-O)
5 31-WAL-MART switch simple inventory management to DATA mining.(T-O)
6 24-Company was working as a teacher to taught about cost control and efficiency.(S-O)
7 15-WalmarT have stores in 50 states of AMERICA.(D-O)
8
02-Walmart cheers in faraway places like Germany, south Korea, china and united kingdom.(G-O)
9
03-World largest and most powerful retailer.(G-O)
10
06-Started retail business internationally.(G-O)
11
10-WALMART operated 4,750 stores till 1969.(G-O)
12 39-WAL-MART started money transfer service.(G-O)
13
08-US nationality .(C-O)
14
19-WALMAR wins by in store items.(C-O)
15
29-WALMART accounted 16% sale of NEWELLS sales in 2003.(C-O)
16
31- WALMART accounted 26% sale of RAYOVAC sales in 2003.(C-O)
17
34-WAL-MART was the largest employer in private industry worldwide in 2004.(I-O)
18
44-World largest retailer.(I-O)
SR. THREATS
1
01- World economy fallen down as WALMART of sales growth only 11%.(E-T)
2 40-Company cannot be stable in ARGENTINA AND BRAZIL because of economy fluctuation.(E-T)
3 04- Forty Court cases by employees getting no overtime payment.(L-T)
4
41-Company could not survive in GERMANY having multiple issues.(C-T)

6. INTERNAL FACTOR EVALUATION(IFE) MATRIX (Rating Strength 3 and 4, Weakness 1 and 2)
KEY INTERNAL FACTORS WEIGHT RATING WEIGHTED
SR. STRENGTH SCORE
1 11-Capital investment on rural location to roll out retail business.(F-S) 0.3 4 1.2
2
45-WAL-MART proven metal in the globe by generating revenue as
doubled from 1999 to 2003.(S-S) 0.2 4 0.8
3 07-Sales of 244.5 billion dollar.(S-S) 0.04 3 0.12
4
17-Walmart responsible to sale 35% all pet food,24% all toothpaste and
largest volume of jewellery,groceries,cd,dvd,toys gun and etc.(S-S 0.03 3 0.09
5 18-WALMART was the world biggest dog food seller.(S-S) 0.04 3 0.12
6 33-Supercenters opened 24 hours a day.(M-S) 0.01 4 0.04
7 12-Employement of nearby residential was a paradise for them.(S) 0.03 3 0.09
8 20-40% Sales of WALMART attributable to in store items.(S-S) 0.01 3 0.03
9 13-Establish own logistic operation.(O-S) 0.02 3 0.06
10
32-WAL-MART operated 4 different format of stores.(O-S)
1-discount stores 2-supercenters 3-neighborhood markets
4-sam`s club 0.01 4 0.04
11 09-WALMART opened 18 stores.(O-S) 0.02 4 0.08
12 21-Product ranging,quality,shipping,stocking and in store displays.(M-S) 0.03 3 0.09
13 42-Company purchased real state in china for warehouse.(P-S) 0.01 3 0.03
14 38-Company increased its ownership over the time in US.(P-S) 0.03 4 0.12
15 26-Scorecard used to track performance of supplier in a smooth way.(O-S) 0.02 3 0.06
16 13-Best management practices.(S) 0.03 4 0.12
17 17-Company launched dog food (M-S) 0.01 3 0.03
18
27-Company deputed audit teams at manufacturer locations FOR
COMPLIANCE (S) 0.02 3 0.06
19 35-Company had 1.3 million associates in 2004.(S) 0.04 3 0.12
20
37-The acquisition strategy paid off in locations such as united
kingdom.(P-S) 0.02 3 0.06
WEAKNESS
1 30-Poorly managed mfg. operations.(MFG-Weakness) 0.03 2 0.06
2 16-Limited advertisement.(M-W) 0.02 2 0.04
3 05-Gender discrimination.(W) 0.01 1 0.01
4
36-Walmart has received criticisms and lawsuits several times regarding
its workforce. Low wages, inadequate healthcare, and poor working
conditions are few of the issues that have been publically criticized.(W) 0.02 1 0.02
1 3.49
RESULTS OF IFE MATRIX:
As internal factors of WAL-MART performance is very good because the weighted score is3.49,thatswhy L’Oréal is going
very well in a smooth way.

7. EXTERNAL FACTOR EVALUATION (EFE) MATRIX (Rating 1 to 4)
KEY EXTERNAL FACTORS WEIGHT RATING WEIGHTED
SR. OPPORTUNITY SCORE
1 15-WalmarT have stores in 50 states of AMERICA.(D-O) 0.4 4 1.6
2
44-World largest retailer.(I-O)
0.2 3 0.6
3
34-WAL-MART was the largest employer in private industry
worldwide in 2004.(I-O) 0.02 4 0.08
4
02-Walmart cheers in faraway places like Germany, south Korea,
china and united kingdom.(G-O) 0.01 3 0.03
5 19-WALMAR wins by in store items.(C-O) 0.01 3 0.03
6 08-US nationality .(C-O) 0.02 4 0.08
7 29-WALMART accounted 16% sale of NEWELLS sales in 2003.(C-O) 0.03 3 0.09
8 31- WALMART accounted 26% sale of RAYOVAC sales in 2003.(C-O) 0.02 4 0.08
9 39-WAL-MART started money transfer service.(G-O) 0.01 3 0.03
10
24-Company was working as a teacher to taught about cost control
and efficiency.(S-O) 0.02 3 0.06
11 06-Started retail business internationally.(G-O) 0.02 3 0.06
12 10-WALMART operated 4,750 stores till 1969.(G-O) 0.03 4 0.12
13 03-World largest and most powerful retailer.(G-O) 0.01 3 0.03
14
31-WAL-MART switch simple inventory management to DATA
mining.(T-O) 0.03 4 0.12
15 25-SCAN N PAY system for individual customer payments.(T-O) 0.02 3 0.06
16 28-MCAP system for product category assortment.(T-O) 0.03 4 0.12
17 23-RFID systemfor goods packaging.(T-O) 0.01 4 0.04
18 22-EDI system to track po,invoices,payments and inventories.(T-O) 0.02 3 0.06
SR. THREAT
1
01- World economy fallen down as WALMART of sales growth only
11%.(E-T) 0.03 1 0.03
2
40-Company cannot be stable in ARGENTINA AND BRAZIL because
of economy fluctuation.(E-T) 0.02 2 0.04
3
41-Company could not survive in GERMANY having multiple
issues.(C-T) 0.03 2 0.06
4
04- Forty Court cases by employees getting no overtime
payment.(L-T) 0.01 1 0.01
1 3.43
RESULTS OF EFE MATRIX:
By external factors of WAL-MART performance is excellent because the weighted score is 3.43 so
WAL-MART can performs faster worldwide having opportunities in new era.

8. COMPETITIVE PROFILE MATRIX
Competitive profile matrix model recognize the comparison between the organization and its
competitor with respect to strength and weaknesses between them.
Competitors # 01
TARGET BRAND is the competitor of WAL-MART in United States working as a supermarketchains
internationally.approx sale of 65 billion dollar with almost 1700 stores operating.
Competitor # 02
COSTCO is anotherone competitor of WAL-MART specially dealing with Sam’s club category, it is
wholesalerand memberofwarehouse club as well.
CPM CONCLUSION
Critical success factors referred as strength and weakness respectively internal and external.
Scoring 1 as more weakened and 4 as more strengthen…
By CPM WAL-MARTis world recognized dominant leader, scoring high as 3.5 got 1st
position,
TARGET got 2nd
position scoring as 2.64 and COSTCO got 3rd
position scoring as 2.05 although
competing Sam’s club alone as only one. so finally WAL-MARTperformed as a world leading
competitor to TARGET and COSTCO competing in a very smooth way
COMPETITORS WAL-MART COSTCO TARGET
CRITICAL SUCCESS
FACTORS
WEIGHT SCORE WEIGHTED
SCORE
SCORE WEIGHTED
SCORE
SCORE WEIGHTED
SCORE
GLOBAL
PENETRATION
0.2 4 0.8 3 0.6 2 0.4
PRICING/DISCOUNT 0.1 3 0.3 2 0.2 3 0.3
MARKETING 0.25 2 0.5 1 0.25 3 0.74
QUALITY OF
PRODUCT
0.1 4 0.4 3 0.3 3 0.3
MARKET SHARE 0.05 3 0.15 2 0.1 3 0.15
BUSINESS
EXPANSION
0.25 4 1 2 0.5 3 0.6
COMPANY FINANCE 0.05 3 0.15 2 0.1 3 0.15
TOTAL 1 3.5 2.05 2.64