The document provides an extensive overview of environmental scanning as applied to Walmart, detailing its history, mission, and competitive strategies. It outlines various scanning methods, internal and external analyses, and potential challenges faced by the company, including strengths, weaknesses, opportunities, and threats. Additionally, it explores the impacts of political, economic, social, and technological factors on Walmart's operations and strategy.

1. By:-
Divya Pandey
MBA( General “C”)
Id No:-152510133
Environment Scanning
On Walmart

2. Environment Scanning
Environmental Scanning gives a road
map for further processes.
 The process of collecting, analyzing,
and distributing information for tactical
and strategic purposes
 Brown and Weiner defined
environmental scanning as "a kind of radar
to scan the world systematically and
signal the new, the unexpected, the major
and the minor" .

3. Kinds of environmental scanning:-
 Ad-hoc scanning :- Short term, infrequent examinations usually
initiated by a crisis
 Regular scanning - Studies done on a regular schedule (e.g. once
a year)
 Continuous scanning (also called continuous learning) -
continuous structured data collection and processing on a broad
range of environmental factors.
 Purpose of an environmental scan:
 To know what is the appropriate business to start in the place.
 To develop strategies that you will do to get ahead of
competitors.
 A corporation uses this tool to avoid strategic surprise and
to ensure its long-term health.

4. Environmental Scanning & Monitoring Techniques:-
Techniques
SWOT
QUESTPEST
Competitor
Analysis
Industry
Analysis

5. Environmental scanning on "WalMart":-
 History Overview:-
•1970: Walmart became public
•1990: 1st National retailer
•1991: International Expansion
•1993: Creation of “Great Value”
•1962: Walten Brothers opened
fist Walmart in Arkansas
•2003: Largest corporation in
the world
2012: 50th Anniversary

6.  Mission Statement:
To help people save money so they can live better
 Goal:
Becoming in an international brand
 Vision:
“If we work together, we’ll lower the cost of
living for everyone…we’ll give the world an
opportunity to see what it’s like to save and have a
better life.
 Advertising slogans:
Save Money. Live better
Walmart store inc. the largest retailer and the largest company
in terms of revenue.

7. LOGOS:-
The above are the logos of Walmart since 1962 and then
upto now.
Founder Of Walmart:-
Samuel Moore "Sam" Walton
was an American businessman
and entrepreneur best known
for founding the retailers
Walmart and Sam's Club.
(March 29, 1918 – April 5, 1992)

8.  Background:-
 Started on 2nd July 1962 ,headquarters in Rogers, Arkansas.
 Public Traded company
 Listing in New York stock exchange
 Launch of supercenter concept
 ORIGINATION STRUCTURE:-
 Information system is centralized
 Operation is decentralized
 Meetings provides opportunity for customer feedback
 Origination is based on 3 basic values
 Respect for the individual
 Service to the customers
 Striving for excellence

9.  Internal And External Analysis Of The Firm :-
Firms’ Value Chain:-
General administration
Human resource management
Technology development
Procurement
Inbound
logistics
Operations
Outbound
logistics
Marketing
and sales
Service

10. Firms infrasctructure: close connection between headquarter and
local stores.
Human resources:
- Based on Interaction practices between company and employees
-Low pay but other benefits (health care plans, retirement plans, or
promotion opportunities)
-2.2 million associates globally.
-Every time we open a supercenter, we provide roughly 300 jobs
-Women57% of our U.S. workforce, 27% of corporate officers, and 20%
of our Board of directors.
Techonology development: It is the key factor of the company. It
constitutes a competitive advantage against competitors.
- Computer-based technology
POS (Point of sales) system
Satellite System
Procurement:
-Wal-Mart deals directly with manufacturers, by passing all
intermediaries.
Support Activities:-

11. Primary Activities
Inbound
Logistics
Operations Outbound
Logistics
Marketing
and sales
Service
-VMI
system
(Vendor
managed
inventory)
continuous
replenishm
ent
-EDI
(Electronic
Data
Interchang
3 business
segments:
a)WalMart
stores
- Super
centers
- Discount
centers
- Neighbor
hood
markets
b) SAM’S
Club
c)WalMart
internatio
-Hub and
spoke
distribution
system.
- CROSS
DOCKING:
logistic
technique
to make the
distribution
process
more
efficient
- Word of
mouth
communicatio
n.
-focuses on
everyday low
prices
“Save money,
live better”
-Sales are on
a self-
service, cash-
and-carry
basis.
-accepting
returned
goods
-Satisfacti
on
guarantee
- Opening
hours(24/7
)

12. Business Formats:-
 Walmart Discount Stores 629 in the US
 Walmart Supercenter: Walmart Discount Stores +
Full Service Supermarket. 3,029 in the US.
 Walmart Market: Previously branded as Walmart
Neighborhood Market. 199 in the US.
2) Sam’s Club. Buy in large quantities. 611 opened in the
US.
1) Walmart Stores

13. Distribution Channels:-
 “Saturation Strategy”
 The company owns a fleet of more than 3,000 trucks and
12,000 trailers.
 The Wal-Mart Way – Cross Docking.

14. SWOT analysis of WalMart:-
SWOT is a acronym for: (STRENGTHS-WEAKNESS-
OPPURTUNITIES,-THREATS)
STRENGTHS:-
•Employee advancement programs
•Campus recruitment
•Good retention rate
•Training and Development
Sams suggestion system
•Walmart is powerful retail plant
•Walmart has grown substantially over recently year, and has
experience global expansion
•The company has a core competency involving its user of IT
to support its international logistics system
•A focus strategy in place for HRM and development.

15.  WEAKNESS:-
 The corporate is huge but still has presence in 14
countries
 Customers sometimes are curious about the quality of
products
 Keep poor performance employee on hand
 The market share is low outside the US market
 Supplies profit margin is very low
 OPPURTUNITIES:-
 Take over , merge with , or form alliances with global
retailers focusing on specific market such as Europe or
China

16.  THREATS:-
 Due to recession in 2008-09 the purchasing
power of customers is reduced
 Market development untapped market specially.
 Being leader it faces a lot of competition
 Poor human relation
 PESTEL Analysis Of Walmart :-
 Political: Policies on economy, trading
agreements (NAFTA…) .
 Economical: Unemployment Rate, slightly
increase in consumption.
 Socio Cultural: Faster pace of live- Efficiency is
key.
 Technological: Use of IT technologies. Online
shopping.

17. 1. Bargaining Power of Customers:
Low
I. Customers usually make small
purchases.
II. A large number of customers.
III.Wal-Mart’s main customers are
individuals.
2. Bargaining Power of Suppliers:
Medium-Low
I. Wal-Mart purchases huge
quantities of products from its
suppliers.
II. Low switching costs from one
supplier to another.
III.Products have a lot of substitutes.
IV. Almost all the products are not
The Five Forces Model

18. The Five Forces Model
3. Potential entrants / Barriers to entry:
Medium-High
I. Economies of scale.
II. High capital requirements.
III. Customers mainly look for products with
low prices and standard quality.
IV. Low switching costs among companies for
customers.
V. Requires a precise distribution system.
4. Power of Substitutes: High
I. Prices and quality of substitute products
are very competitive.
II. Performance of substitute products are
similar.
III. Consumer switching costs are low.

19.  5. Potential Competitors/ Rivalry: High
I. Wal-Mart represents the 25% share of the U.S.
Supermarket business.
II. Competitors have similar sizes.
III. Industry growth is slow.
IV. Exit barriers are high.
V. There is a high production capacity
WAL-MART main competitors:
Retailer Industry:
• Target
• K-Mart
Supermarket Industry:
• Dollar General
• Lowe’s Food.

20.  Article N0-1
 This article is on A Primer on Environmental Scanning in Higher
Education By Society For College which acts as integrated
planning for Higher Education by:-
 Phyllis T. H. Grumman
Age: 10, born about 1930
 Birthplace : Michigan
 Gender: Female
 Race: White
 Phyllis Grumman has over thirty years of experience
as a change agent and community builder. As an
organizational psychologist and facilitator, she
engages work groups in optimizing their human and
business interactions. Phyllis Grumman's career
provides her with a knowledge of organizations in
manufacturing, insurance, mental health, policy
analysis and development, and education and training .

21.  Analysis and Review:-
 This article describes about environmental scanning and its dimensions
as well as this article focuses on deep scan of environmental of various
dimension includes demographics, economics , Global Education ,Politics
and Technology to plan for integrated and higher education . This article
was written by Phyllis T.H. Grumman.
 Describes the demographics of the schools of regional, national as well
as includes population estimate , increase in any fatal diseases and
other, as well describes about changes and effect of migration pattern
of people in schooling system.
 Factors such as the costs of energy, construction materials, and
consumer goods, as well as increases in demand across the globe, have
had significant effects on local markets and economies. Scanning for
trends in global education involves attending to the economics and
politics of education, as well as changes in the efficacy and delivery of
instruction and research. Politics is about power, and understanding how
power is being exerted is a necessary part of any environmental scanning
process. Higher education contributes to political discussion, for
example, through research studies that influence policy decisions. Any
political changes that might affect the willingness of a country, state, or
region to fund and support education are ones that must be watched
over time. Technological advances affect education in many ways: how
students are taught, where they learn, what research faculty members
can pursue, how institutions are operated and managed. Also helps in
identifying and using the emerging trends.

22. Article 2 :-
This article was published on 2008 july on Environmental Scans
on Can Fam Hospitals by following researchers to enquire
about the health care environmental scanning:-
 Paul Graham,( MA MLIS ), Research associate and librarian
working in the Department of Sociology at the University of
Saskatchewan in Saskatoon.

 Trina Evitts, (MA), Research facilitator in the College of
Nursing at the University of Saskatchewan

 Roanne Thomas-MacLean, (PhD), Associate Professor in the
Department of Sociology at the University of Saskatchewan

23.  Analysis and Review :-
 according to this article , is about critical examination of the environmental
factors to design the effective health programs uniquely according to the need
of the communities and how can the health services utilized.
 These environmental scans is a tool for retrieving and organizing data for
decision making. Not only to business organizations but other as well health
organization carry on these scans and get benefited to know about nutrition ,
women's health and other issue to gain knowledge.
 This article gathers the internal as well external sources of data including
memos, personal communication, minutes of the meeting or other internal
documents and various other sources. Includes two approaches:-
 a) Passive Approach :- (collecting existing knowledge)
 b) Active Approach :- (i.e. creating new knowledge involves an organization taking
action and analyzing reactions and creating data collection tools to obtain data.
 According to this , still environmental scanning lacks the effective measure of
scanning because of absence of diverse approaches. One of the scan was used to
determine cancer screening among African Americans and screened out 312 men
and 169 women suffered from cancer. and also the researchers realized the best
way to train volunteers and staff ,to reach them was face to face meeting. This
approaches mainly helped for collecting data for being conducted to determine
what types of physician mentorship programs are in place in Canada.
 At last as the article covers a short description of the health scan area , this is
the valuable tools in health decision making and if environmental scanning method
is designed in consultation with and information specialist and provides evidence
for policy and decision making and program planning and resulted as same that
lead to evidence based solutions to health care issues.

24.  Article no:- 3
Writer of The Article and Background :-
Bronwyn Higgs
 Lecturer at Victoria University Melbourne Area, Australia Education
Management
 As Bronwyn Higgs explains, environmental scanning can enrich your
understanding of the marketplace and give your company a competitive edge.
 Soon to be retired academic in marketing and advertising, has been a regular
contributor to Australian Marketing Magazine (mainly in the area of new
media and implications for marketing theory and practice), has published
scholarly articles in academic journals in fields of advertising, media usage,
consumer behavior, arts marketing and local history, also works as a
freelance journalist on a range of historical topics, has carried out honorary
service as publicist to sporting clubs and an amateur symphony orchestra,
has also assisted various musicians with publicity, marketing, advertising as
well as applications for grants/ funding.
 Specialties: Professional: social and interactive media, problem based
learning, marketing of the arts
Personal: jazz, gardening, history, genealogy

25. Analysis and review:-
 This article is an adaptation from the book of Marketing in 2006.
 Environmental Scanning is the technique of Analyzing the environment and
many of the researchers focuses on the PEST Analysis Technique of the
Scan . PEST is the acronym for Political, Economic, Social and
technological and this scan would be very systematic and effective
method . Following measures are defined to be taken in consideration for
the environment scan:-
 Keep an open mind:- An analyst must be always open to "what you are
looking for" and "what you want to do".
 Scan internally and externally:- Deep research of the internal scan of
the employees of the organization as well as the documentation etc. and
external san of the environment of political, economic , social and
technological.
 Scan Copious amounts of data and use of various analytical
techniques :- Relevant and ample of data to be scanned and for numeric
presentation technique to be used for evidence based results.
 Focus on change:- Change is the rule of nature and to be maintained in
the dynamic world just flow with it but in a right direction.
 Conduct an initial , superficial Scan and using reliable sources of data
:- None can go through the deep, so suface scan in a quick manner is to
be done and data must be relevant.