This document analyzes alternatives to increase international sales for Walmart from 9.1% to 15% in the next fiscal year. It identifies Walmart's strengths as its financial strength, global stores, and retail experience. Weaknesses include downward sales trends and traditional management. Opportunities exist in expanding to developing markets like Southeast Asia. Threats include aggressive competition and healthy lifestyle trends. The best alternative identified is expanding through joint partnerships in Southeast Asia, as it offers the highest potential profitability, cost efficiency, and manpower utilization.

1. CASE STUDY:
WALMART
RESOURCE PERSONS:
WILLIAM PEREZ
NORGEE PARENO

2. HISTORY

3. • Declining of Sales of International Segment of Walmart
Net Sales Increase from 24.1% to 9.1%.
MAIN PROBLEM

4. 2009TIME CONTEXT

5. POINT OF VIEW

6. • To increase the Sales International Segment of
WALMART from 9.1% to 15% in the next fiscal year
2010.
STATEMENT OF
OBJECTIVE:

7. S.W.O.T ANALYSIS
AREAS OF
CONSIDERATION

8. The following are the reasons and strong foundation why
Walmart is still existing and continuous to be the biggest
player in retail industry.
• Financial Strength
• Global Stores and Partners
• Experience in large scale retailing
Walmart’s financial strength gives the company the leverage
in acquiring competition as well expansion. The Global store
branches provide lump sum value to the overall profit of the
company, it also maintains it momentum in invading
overseas. Lastly, with more than 50 years of expertise in
retail – WalMart have changed the landscape and
continuously innovate the industry.
WALMART’S
STRENGTHS
(INTERNAL)

9. Basically the weaknesses of Walmart as a business have
been identified many years ago, it revolves on the
stronghold to its traditional practices and company failure to
exceed the previous sales.
• Downward trend in the annual sales profit for its
International Stores
• Strong presence of traditional management
This is due to stagnant consumer demand in their overseas
stores. The management model in terms of handling their
people are still observed like prohibits employee from
dating.
WALMART’S
WEAKNESSES
(INTERNAL)

10. Since the expansion is the main opportunity of Walmart, we
have identified only 1 item;
• Expansion in Industrial-developing geographies such as
SEA
In the recent count of international WalMart Stores, there
are no stores or plans in expanding their business. SEA
regions have been cited as one of the fastest growing
economies, In countries like Singapore, Thailand,
Philippines, Malaysia, Indonesia and so forth. The buying
power of the people in this region is considered to be one of
the strongest in Asia.
OPPORTUNITIES
FOR WALMART
(EXTERNAL)

11. We have identified 2 threats to Walmart’s business and they
are more likely linked to retail market conditions and
customer perception about the products and services
rendered.
• Aggressive competition
• Healthy lifestyle trend
Plenty of big and small competitors are playing and luring
customers which take big-chunk of sales profit every year.
Competitions like Costco Wholesale, Target and Dollar
General Corp. use aggressive marketing and strategies
which are observed by market analysts. And with the current
trend and fad where most convenience stores and retail
stores offers organic and health-conscious products and to
add promoting healthy lifestyle – competitions are in
advantage as they appeal to the consumers very well.
THREATS FACING
WALMART
(EXTERNAL)

12. • Expansion of business through joint partnership with
leaders in retailing companies in the Southeast Asia
region.
• Set up new business in South East Asia region.
ALTERNATIVE COURSE
OF ACTION (ACA)

13. ACA # 1 ACA # 2
Gains Gains
• Retaining quality - whether it is staffing or additional skills, knowledge of your industry or
sector and other business intelligence.
• Wide range of Access - whether it is funds or valuable assets for new development. Better
production or distribution facilities are often less expensive to buy than to build. Look for target
businesses that are only marginally profitable and have large unused capacity which can be
bought at a small premium to net asset value.
• Wider scope and access in your target customer base and increasing your market share.
Your target business may have distribution channels and systems you can use for your own
offers.
• Diversification of the products, services and long-term prospects of your business. A target
business may be able to offer you products or services which you can sell through your own
distribution channels.
• Reducing your costs and overheads through shared marketing budgets, increased
purchasing power and lower costs.
• Reducing competition. Buying up new intellectual property, products or services may be
cheaper than developing these yourself.
• Organic growth, ie the existing business plan for growth, needs to be accelerated.
Businesses in the same sector or location can combine resources to reduce costs, eliminate
duplicated facilities or departments and increase revenue.
• Lower start-up costs - Depending on the type of business you start,
costs may be lower than a franchise where there is no up-front
purchasing fee or supply costs
• Independence - You make all decisions and create all business
systems
• Site selection - You choose where to locate your business and what
marketing procedures to follow
• No baggage - There is no history to overcome when you start a new
venture
Losses Losses
• Creates high stake of stress within employees of each organization
• Possibility of an increase amount of inherited debt
• Differences in corporate culture that are not easy to consolidate
• It isn’t a one person decision most of the time
• High commitment - Starting your own business requires a higher
commitment of time and energy
• High risk - Success depends totally on you and your business
talents
• Delayed profitability - Where the market may not already be
established, it may take longer to become profitable
• Limited financing - Financing for a new business is more difficult to
obtain
QUALITATIVE
ANALYSIS

14. Criteria ACA # 1 ACA # 2
Profitability 3 2
Cost efficiency 2 2
Operations 3 2
Manpower 3 1
Total 11 7
QUANTITATIVE
ANALYSIS
(DECISION MATRIX)
Legend:
1. – Good 2. – Better 3 - Best

15. ACTIVITIES Person Responsible Timeframe
Send and set-up a meeting with the CEO for
International Walmart Stores David Cheesewright 1-2 weeks
Presentation of the proposed plan, project
,marketing, financial and strategic planning David Cheesewright 2 weeks to 2 months
Approvals and suggestions from the executives David Cheesewright 5-7 business days
PLAN OF ACTION

16. From the comparison made between qualitative and
quantitative data, we have identified and concluded that;
Option 1, which is the ACA #1 shows its potential and
leverage in increasing sales profit for Walmart
international Stores. It has been identified that by using
this option – Walmart is reducing it competition at same
time broaden it market.
The target of 15% increase in the annual sales is
attainable, as consumers in the SEA region are very
eager and has the money to buy the Walmart products.
CONCLUSION

17. • www.walmart.com
• http://corporate.walmart.com/our-story/our-history
• http://corporate.walmart.com/our-story/leadership/executive-management/mike-
duke
• https://www.ft.com/content/cbcb3f9e-d640-11e5-8887-98e7feb46f27
• http://www.usnews.com/opinion/economic-intelligence/2015/11/25/the-real-reason-
wal-marts-profits-are-hurting
• http://www.icaew.com/mwg-
internal/de5fs23hu73ds/progress?id=0K_7j66iwp4NBH20DTcufpwmXKlYAwQlpS_
Zp_nO9ho,&dl
• http://financials.morningstar.com/competitors/industry-peer.action?t=WMT
• https://www.youtube.com/watch?v=ANdUwsKkB6I
REFERENCES