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The Business Environment
Agenda
• Internal Environment
– Mission & Objectives
– Value System
– Management Structure & Financials
– Human Resources
– Company Image & Brand Equity
– R&D Capability
Agenda
• External Environment
– Micro Environment
• Suppliers
• Customers
• Competitors
– Macro Environment
• Economic
• Political
• Socio-Cultural
• Technological
• Natural
• SWOT Analysis
Internal Environment
• Mission Statement & Objective
“We Save People money so they can live better.”
Internal Environment
• Value System
– 3 Basic Beliefs & Values
• Respect for the Individual
• Service to Our Customers
• Striving for Excellence
Internal Environment
• Value System
– Open Door Policy
• Manager’s Doors are open to employees at all levels
– Sundown Rule
• Answering employee, customer and supplier queries on
the same day
– Grass Root Process
• Capturing suggestions and ideas from the sales floor
and front lines
Internal Environment
• Value System
– 10 Foot Rule
• Making eye contact, greeting, and offering help to
customers who come within 10 feet
– Servant Leadership
• Leaders are in service to their team
– Wal – Mart Cheer
• Chant created by founder Sam Walton to lift the morale
every morning
Internal Environment
• Background
– Started by Sam Walton in 1962 in
Rogers, Arkansas
– Headquarters in Bentonville, Arkansas
– Largest grocery retailer in USA
– 10,700 stores in 27 Countries under 69 different
names
Internal Environment
• Management Structure & Financials
Internal Environment
• Human Resource
– Employs 2.2Million people around the world earning
between $50,000-$1,70,000 a year
– Employee Emphasis on
• Integrity
• Respect
• Open Communication
• Innovation
Whether a part-time job or the career of a
lifetime, working at Walmart means
opportunity!
Internal Environment
• Image & Brand Equity
– Most Valuable Retail Brand with a worth of $34.4
Billion
– Walmart follows
• Environment Sustainability
• Fight Against Hunger
• Women’s Economic Empowerment
• Diversity & Inclusion
• Ethical Sourcing
• Veteran’s & Military Families
External Environment
• Micro Environment
– Suppliers
• National Product Suppliers
• Local Product Suppliers
• Service & Non-Resale Suppliers
• Direct Import & Global Suppliers
There are a total of more than 100,000 suppliers for
Walmart world over!
External Environment
• Micro Environment
– Suppliers
• Standard For Suppliers
– Compliance With Laws
– Voluntary Labor & Labor Hours
– Proper Compensation
– Health & Safety
– Financial Integrity & Anti-Corruption
External Environment
• Micro Environment
– Suppliers
• Audit Process
– Opening Meeting
– Factory Tour
– Employee Interviews
– Documentation Review
– Closing Meeting & Signing Onsite Report
• Four Outcomes
– Green
– Yellow
– Orange
– Red
External Environment
• Micro Environment
– Suppliers
• 3000 + Suppliers
• National Minority Supplier Development Council
• Women’s Business Enterprise National Council
• Disability Supplier Diversity Program
External Environment
• Micro Environment
– Customers
External Environment
• Micro Environment
– Customers
• Wholesale
• Retail
• Industrial
• Government
• Foreign
External Environment
• Micro Environment
– Competition for Walmart (Industry Competition)
• In USA
– Kmart
– Target
– ShopKo
– Meijer
• In Canada
– Real Canadian Superstore
– Giant Tiger
• In Mexico
– Comercial Mexicana
– Soriana
External Environment
• Micro Environment
– Competition for Sam’s Club (Industry Competition)
• Costco
• BJ’s Wholesale Club
External Environment
• Macro Environment
– Economic
• With its operations spread worldwide, and majority of
business coming from USA, Walmart post recession has
suffered a loss in sales but has not been severely
affected due to sheer volume and presence in other
economic zones
• Economic Impact of Host Country
– Challenges of high interest rate
– Higher fuel & energy cost
– Inflation
– Higher level of unemployment
– Higher Tax Rates
External Environment
• Macro Environment
– Political
• Political environment is again region specific and
Walmart currently is not facing any major political issues
except in India with the fight over 100% FDI in retail
• Failure in Germany occurred because Walmart could not
sell its products below the prices fixed in the Euro Zone
External Environment
• Macro Environment
– Socio-Cultural
• Perfectly suited for the US Market
• Failure in Germany & China due to standards set by
Walmart and Organizational Cultural Clashes
• In current markets there is an increase in urbanization
and habits & preferences which would suit the cause of
Walmart
External Environment
• Macro Environment
– Technological
• With one of the best and most sophisticated logistics
software and many other new innovations to their credit
in Retail Management, Walmart has always been a front
runner when it comes to Technological Advancements in
its field and puts back a huge sum back on R&D so that it
can maintain its position as the No.1 Retail Brand
External Environment
• Macro Environment
– Natural
• To be supplied 100% by renewable energy
• To create zero waste
• To sell products that sustain people and the environment
SWOT Analysis
• Strengths
– Huge & Loyal Customer Base
– Strong Employee Base
– Strong Financial Position
– Lowest Prices offered in the Retail Industry
– Widest Range of Product Offerings
– Core Competencies including IT, Supply Chain &
Inventory
SWOT Analysis
• Weaknesses
– Mass procurement  Overstocking
– Sheer size leads to complications
– Strong only in the Host Nation
SWOT Analysis
• Opportunities
– Expansion in International Markets
– Online Products for Sale
– Acquiring suppliers, further reducing costs
– Expand Brand Portfolio
SWOT Analysis
• Threats
– Economic Slowdown in Host Country
– Government Regulations
– Increase in Competition
– Changes in Tax Rates & Exchange Rates
Thank You

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Walmart

  • 2. Agenda • Internal Environment – Mission & Objectives – Value System – Management Structure & Financials – Human Resources – Company Image & Brand Equity – R&D Capability
  • 3. Agenda • External Environment – Micro Environment • Suppliers • Customers • Competitors – Macro Environment • Economic • Political • Socio-Cultural • Technological • Natural • SWOT Analysis
  • 4. Internal Environment • Mission Statement & Objective “We Save People money so they can live better.”
  • 5. Internal Environment • Value System – 3 Basic Beliefs & Values • Respect for the Individual • Service to Our Customers • Striving for Excellence
  • 6. Internal Environment • Value System – Open Door Policy • Manager’s Doors are open to employees at all levels – Sundown Rule • Answering employee, customer and supplier queries on the same day – Grass Root Process • Capturing suggestions and ideas from the sales floor and front lines
  • 7. Internal Environment • Value System – 10 Foot Rule • Making eye contact, greeting, and offering help to customers who come within 10 feet – Servant Leadership • Leaders are in service to their team – Wal – Mart Cheer • Chant created by founder Sam Walton to lift the morale every morning
  • 8. Internal Environment • Background – Started by Sam Walton in 1962 in Rogers, Arkansas – Headquarters in Bentonville, Arkansas – Largest grocery retailer in USA – 10,700 stores in 27 Countries under 69 different names
  • 9. Internal Environment • Management Structure & Financials
  • 10. Internal Environment • Human Resource – Employs 2.2Million people around the world earning between $50,000-$1,70,000 a year – Employee Emphasis on • Integrity • Respect • Open Communication • Innovation Whether a part-time job or the career of a lifetime, working at Walmart means opportunity!
  • 11. Internal Environment • Image & Brand Equity – Most Valuable Retail Brand with a worth of $34.4 Billion – Walmart follows • Environment Sustainability • Fight Against Hunger • Women’s Economic Empowerment • Diversity & Inclusion • Ethical Sourcing • Veteran’s & Military Families
  • 12. External Environment • Micro Environment – Suppliers • National Product Suppliers • Local Product Suppliers • Service & Non-Resale Suppliers • Direct Import & Global Suppliers There are a total of more than 100,000 suppliers for Walmart world over!
  • 13. External Environment • Micro Environment – Suppliers • Standard For Suppliers – Compliance With Laws – Voluntary Labor & Labor Hours – Proper Compensation – Health & Safety – Financial Integrity & Anti-Corruption
  • 14. External Environment • Micro Environment – Suppliers • Audit Process – Opening Meeting – Factory Tour – Employee Interviews – Documentation Review – Closing Meeting & Signing Onsite Report • Four Outcomes – Green – Yellow – Orange – Red
  • 15. External Environment • Micro Environment – Suppliers • 3000 + Suppliers • National Minority Supplier Development Council • Women’s Business Enterprise National Council • Disability Supplier Diversity Program
  • 16. External Environment • Micro Environment – Customers
  • 17. External Environment • Micro Environment – Customers • Wholesale • Retail • Industrial • Government • Foreign
  • 18. External Environment • Micro Environment – Competition for Walmart (Industry Competition) • In USA – Kmart – Target – ShopKo – Meijer • In Canada – Real Canadian Superstore – Giant Tiger • In Mexico – Comercial Mexicana – Soriana
  • 19. External Environment • Micro Environment – Competition for Sam’s Club (Industry Competition) • Costco • BJ’s Wholesale Club
  • 20. External Environment • Macro Environment – Economic • With its operations spread worldwide, and majority of business coming from USA, Walmart post recession has suffered a loss in sales but has not been severely affected due to sheer volume and presence in other economic zones • Economic Impact of Host Country – Challenges of high interest rate – Higher fuel & energy cost – Inflation – Higher level of unemployment – Higher Tax Rates
  • 21. External Environment • Macro Environment – Political • Political environment is again region specific and Walmart currently is not facing any major political issues except in India with the fight over 100% FDI in retail • Failure in Germany occurred because Walmart could not sell its products below the prices fixed in the Euro Zone
  • 22. External Environment • Macro Environment – Socio-Cultural • Perfectly suited for the US Market • Failure in Germany & China due to standards set by Walmart and Organizational Cultural Clashes • In current markets there is an increase in urbanization and habits & preferences which would suit the cause of Walmart
  • 23. External Environment • Macro Environment – Technological • With one of the best and most sophisticated logistics software and many other new innovations to their credit in Retail Management, Walmart has always been a front runner when it comes to Technological Advancements in its field and puts back a huge sum back on R&D so that it can maintain its position as the No.1 Retail Brand
  • 24. External Environment • Macro Environment – Natural • To be supplied 100% by renewable energy • To create zero waste • To sell products that sustain people and the environment
  • 25. SWOT Analysis • Strengths – Huge & Loyal Customer Base – Strong Employee Base – Strong Financial Position – Lowest Prices offered in the Retail Industry – Widest Range of Product Offerings – Core Competencies including IT, Supply Chain & Inventory
  • 26. SWOT Analysis • Weaknesses – Mass procurement  Overstocking – Sheer size leads to complications – Strong only in the Host Nation
  • 27. SWOT Analysis • Opportunities – Expansion in International Markets – Online Products for Sale – Acquiring suppliers, further reducing costs – Expand Brand Portfolio
  • 28. SWOT Analysis • Threats – Economic Slowdown in Host Country – Government Regulations – Increase in Competition – Changes in Tax Rates & Exchange Rates