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Wal-Marts internal activities. If any new technology comes, Wal-Mart tries to utilize it for their efficiency in the organization as early as possible. They always try to use advanced technology in their activities. Usually Wal-Mart is not much aware about their external environment (mostly during the present CEO) for which they are facing some problems. They always try to improve their internal performance, customer service but not considering the external environment. BUSINESS ENVIRONMENT: Industry Structure and Competitive Position: Wal-Mart is a chain store and chain store industry is very much competitive in maximum advanced countries mostly in U.S.A. Thousands of chain stores are growing in the market and each of them are trying to achieve their goal by providing competitive facilities. Some old and new large chain shopping males are J.C. Penny, Super Kmart Store, Super Target Store, Costco etc. Wal-Mart is competing with all the competitors in the super store industry. Wal-Mart is standing on the top in this competition. Considering all the factors of super market Wal-Mart is in the highest position. The considering factors are customer satisfaction, location, Brand image, Business strategy, Management etc. KEY SUCCESS FACTORS: Wal-Mart is the number one super store in the world for its provided customer satisfaction. Not only the customer satisfaction, there are many other factors those have supported for being successful. Those key success factors are being given below:
Wal-Mart always use latest and high technology that support to provide
customer service. For instance using intranet among suppliers, management and employee from different locations.
They follow Just in Time (JIT) method for inventory control. It reduces
the costs of organization.
Store Layout of Wal-Mart is very well decorated and very good. The furniture and the products are decorated (displayed) in a way so that consumers can see all the products and they can move in the store very comfortably.
They are covering a large rural area in product distribution. They have a very renowned brand image. Product line is very wide. (about 30,000+) They have long term motivating mission. They have a strong organizational culture (values, rules, beliefs) Rural area coverage. So large distribution area.
The current strategy is less likely to satisfy all the stakeholders and there is a possibility to be some conflicts among them in near future. Dissatisfied Stakeholders: Wal-Mart has established some strong standards for the vendors those must be followed by them and Wal-Mart monitors their implementation. All suppliers are not happy with this control on them. According to the current strategy, organizational growth is not going along with the expectation. So the stockholders are little bit worried about it.
Management team, employee and the labors may not feel comfort in this workplace where there are claim for labor wage and female discrimination. Wal-Mart may face following Potential Conflicts in the organization for above dissatisfactions: Sufficient inputs (supply coming) may be hampered from vendors. Conflict may arise between authority and vendors. Less productivity may occur because of dissatisfying employee. Stock price may down because of low organizational growth. For above conflicts Wal-Mart may face many other problems like sales down, customers dissatisfaction, affecting brand image and low profit making.
Issues
Issues
Wide geographical distribution--------10 Better customer service capability-----09 Purchasing goods in lower price-------08 Using high technology------------------08 Strong historical background-----------08 Inspiring Mission------------------------07 Organizational culture is very good---07 Large capital------------------------------07 Wide product line------------------------07 Strong brand image----------------------10 Better supply chain management------07
Insufficient advertisements----------------09 They are failed to handle critical issues--08 R&D is not much strong-------------------08 Taking many new unskilled labors-------08 New CEO and management team--------07 Cant be continuing current success-----06
Issues
Issues
Sales is increasing at deceasing rate-----10 Some claims are coming from labors----09 6000 law sues affecting brand image----09 Government Barriers----------------------08 Big competitors like Costco--------------08 Cost has been increased for labor.-------08 Not Conscious ----------------------------07 Centralized distribution system---------07 Non Immigrant labors --------------------06