Strategic Management | My Assignment Tutor

Trident University International Jeffery L. Bland Strategic Management Module 2 SLP MGT599: Strategic Management Dr. Michael Laverty 10 April 2021 Introduction The purpose of the session long project is to provide a brief analysis of an internal and external SWOT – Strengths, Weaknesses, Opportunities and Threats of Walmart Incorporated. Walmart began as a discount store operating under the premise of selling the customers more for less, and has grown into one of the largest retailers worldwide. Walmart Incorporated now operating as 24-hour Supercenters has some 10,500 stores and Sam’s Club in 24 countries, manages multiple eCommerce websites and employs more than 2 million associates worldwide. [ CITATION Wal21 l 1033 ] I will then make a brief comparative assessment of this analysis to the SWOT analysis of PepsiCo. SWOT Analysis of Walmart The intent of the Walmart SWOT is to identify and analyze one key internal or external strength, weakness, opportunity and threat as an assessment of their core abilities, competitive alignment, and strategic planning. Key Strength: Global Brand Recognition and Size Walmart is one of the world’s largest retailers operating in multiple segments: Nationwide, Internationally, Sam’s Club and Walmart.com. Aside from falling prices, they are everywhere, this explains why there is so much brand name recognition. The corporation’s overall strength is related to the size and unique coverage of the retail industry from many angles. Walmart uses technological advancement for the enhancement of their economies of scale low pricing strategy. They are accessible in almost every local community as 24-hour supercenters and grocery markets, or you have the option of membership for bulk purchases with Sam’s Club. Having every angle covered gives the business vast funding for continued growth and expansion in the retail industry as a strong competitor. [ CITATION Swo21 l 1033 ] Key Weakness: Negative Reputation of Employee Treatment A major issue with Walmart is their negative reputation regarding the mistreatment of their employees. Light has been shed on Walmart practice of unethical behavior regarding the pay, equality and work requirements of their employees. [ CITATION Alv20 l 1033 ] According to Law Aspect.com Walmart ethical standards deteriorated as their sales increased and this may be the cause as to why they had need to settle various lawsuits related to multiple claims of unequal wages, pay and promotion discrimination, and sex discrimination. In 2008, Walmart settled a wage and hour lawsuit from 42 states and paid the 63 claimants between $3352M – $640M. In 2013, Walmart paid $11.7M to settle a sex discrimination lawsuit for back pay and compensation after refusing to hire women in entry level warehouse positions. The article painted a sorry picture of the annual salary of a Walmart employee being just slightly above the poverty level. [ CITATION Law20 l 1033 ] Key Opportunity: Developing Nation Expansion Walmart has an opportunity for continued growth and expansion by increasing their presence in developing nations.[ CITATION HagND l 1033 ] Although they have other opportunities, this one will increase their brand recognition, industry market share and target audience. This opportunity for growth and expansion is directly linked to improving economic conditions of the company and the developing nation. As such, this is the best opportunity of choice from a management standpoint. As these nations are in development, Walmart could get in early and set the standard for business practices relating to retail sales. However, they may want to consider also addressing opportunities that improve the reputation of their Human Resources and the quality of their products. Key Threat: Health-Conscious Consumer Trends The company’s threats are totally connected with the changing lifestyles of consumers who desire to eat food that is healthier. Walmart has an opportunity to provide foods that are organic, from local farms and healthier. [ CITATION HagND l 1033 ] Often times when shopping at Walmart their vegetables are wilted or severely damaged from shipping. Walmart can take advantage of this opportunity to increase its market share offering these products for consumers that seek to eat organic, which they perceive as healthier. Providing fresh fruits and vegetable from local farmers will demonstrate their support of the local communities as a form of Corporate Social Responsibility. Comparison Analysis of Walmart and PepsiCo Walmart operates in the retail industry, while PepsiCo operates in the food and beverage industry. Although, they operate in different industries, they are both in the business for the purpose of making a profit. As successful global corporations, there are core competencies that both perform well and from which the other can learn. Walmart’s key strength is their Global Brand Recognition and Size, while PepsiCo’s strengths are Global Brand Portfolio Recognition, and Diversified Portfolio. Both of these corporations are well known by brand globally for their products and quality. Walmart’s key weakness is they have a negative reputation for employee treatment, while PepsiCo weaknesses are high sugar content of products and the needs of the health-conscious consumer. Walmart needs to address the human resources issues regarding inequality and discrimination to improve the culture of their workplace. PepsiCo has created a positive environment where the employees are encouraged to be creative and innovative. Walmart’s key opportunity is expanding into developing Nations, while PepsiCo opportunities are product diversification and increasing e-commerce sales. Both of these corporations are global powerhouse with access to funds for expansion. PepsiCo can review the technological advances of Walmart to assist with increasing their sales via e-commerce. Walmart’s key threat is the trends of the health-conscious consumer, while PepsiCo threats are competition, and the Pandemic induced recession which has brought about a decrease in disposable income which has affected their sales and revenue. This particular threat to Walmart is a weakness and opportunity for PepsiCo. As PepsiCo is taking advantage of this opportunity to address their weakness by offering products with lower sugar, salt fat content. Walmart can take advantage of this threat as an opportunity to offer products that are organic and healthy. Conclusion This session long project has provided a SWOT analysis of Walmart Incorporated detailing one key internal strength and weakness and one key external opportunity and threat. From this analysis, it is concluded that Walmart should take advantage of their opportunity for growth and expansion in developing nations to increase their brand recognition, industry market share and target audience. References Alvin, A. (2020). Medium.com. Retrieved April 8, 2021, from Walmart SWOT Analysis 2020: Case Study Analysis: https://medium.com/@andyalvin111/walmart-swot-analysis-2020-case-study-analysis-a3a98b82b854#:~:text=The%20main%20weakness%20of%20Walmart,the%20brand%20has%20also%20suffered. Hague, F. (N.D.). The Strategy Watch. Retrieved April 9, 2021, from SWOT Analysis of Walmart: https://www.thestrategywatch.com/swot-analysis-of-walmart/ Law Aspect.com. (2020). Retrieved April 8, 2021, from Walmart Unethical Behvaior: https://lawaspect.com/walmart-unethical-behavior/ SwotAnalysisTemplate.com. (2021). Retrieved April 9, 2021, from SWOT Analysis of Walmart 2020: Detailed Overview: https://www.swotanalysistemplate.com/swot-analysis-of-walmart/ Walmart.com. (2021). Retrieved March 26, 2021, from About Us: https://corporate.walmart.com/our-story

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