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Walmart Hongchul Jun


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Walmart Hongchul Jun

  1. 1. Wal-Mart Case Analysis Hongchul Jun
  2. 2. Backgrounds 1970-1985 <ul><li>Long prosperity (Early 70’s)‏ </li></ul><ul><li>End of Vietnam war (1973)‏ </li></ul><ul><li>Oil shock (1980)‏ </li></ul>
  3. 3. Political changes <ul><li>High Fed Funds Rate to fight against inflation </li></ul><ul><li>Brought Stagflation </li></ul>%
  4. 4. Economical changes! <ul><li>Stagflation </li></ul><ul><li>Oil shock </li></ul><ul><li>Unemployment </li></ul>
  5. 5. Economical changes $ %
  6. 6. Economical changes
  7. 7. Social changes <ul><li>Strong labor union </li></ul>
  8. 8. Technological changes HC Jun
  9. 9. Take Opportunities! Political Change Economic Change Social Change Technological Change Nature of Change Impact of Change Opportunities Threats Strategic Response Higher Fed Funds Rate Stagflation More needs of discount store Discourage customers Increase stores High oil prices & Unemployment Increase shipping costs Lower profit margin Centralized Distribution Strong labor union Higher wage, Inflation Strike Let them participate! Commercial Computer New way of processing information Virtually unlimited usage Apply: Inventory, Distribution
  10. 10. Thank you!