StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Strategic Management and Business Policy - Essay Example

Cite this document
Summary
The Wal-Mart Corporation is divided into three divisions; Wal-Mart Stores, Sam's Club, and the International Division. The Wal-Mart Store division is by far the largest of the organization accounting for 68% of sales (based on figures compiled on Jan 31, 2004 regarding sales figures from 2003)…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER94.3% of users find it useful
Strategic Management and Business Policy
Read Text Preview

Extract of sample "Strategic Management and Business Policy"

Download file to see previous pages

In 1995 Fortune magazine began to include service companies in its Fortune 500 list and by doing so Wal-Mart entered in at a ranking of fourth. Since then the company has remained on the list, climbing the ranks until it reached number one in 2002, where it remains today, with a growth rate of about 15%. "The revenues reflect domestic and international expansion and an increase in same store sales. Net income also benefited from reduced inventory shrinkage, improved merchandising, and a decrease in interest costs of capital leases.

" (Reuters) Wal-Mart does not formally spend time and resources on developing a corporate mission statement. Nor do they commit resources to research and development. The company follows a 'down home' approach to business woven into the corporate culture by its founder, Sam Walton. His approach to business was personal, with a high amount of resources devoted to community relationship. The retail giant has settled on the market segment which looks for low prices as the most important factor influencing the buying decision.

The result is that Wal-Mart is perceived as a friendly place to purchase goods at low prices. This marketing approach has served the retail giant well. The corporation has a board which consists of internal membe. The internal members are concerned with the day to day of the organization, and the external members can take a wider view of the company's overall image, and influence in the community it serves. This approach to ongoing corporate governance keeps the organization grounded to the community, and allows it to function without the formal mission statement.

The board serves as a rudder in the crosscurrents of today's business environment. III. External Environment. Wal-Mart employs a Buy American program, and stocks its shelves with many American goods. Wal-Mart has gained a lot of popularity through this program, and many Americans applaud Wal-Mart for its commitment to domestic manufacturers instead of catering to cheap foreign suppliers. But suppliers have complained that this has shut out non-Americans companies and suppliers from distributing through the Wal-Mart chain.

This approach to business carries with it both positive and negative consequences. The company has wide product selection at deep discounts, but a slowing national economy could limit product diversity, as well as price flexibility. The company has a strong position in discount retail market but is not engaged in research and development for future market positioning. Wal-Mart is increasing market share, but faces potential market saturation and decreased profit margin without availing itself of increased product diversity.

Within the communities it serves, Wal-Mart provides new jobs, often in rural areas which have limited employment potential. But the consequences of which are that many small businesses are often forced to close as a result of the price competition within a limited market. The unintended results can be development of customer loyalty, or a

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Strategic Management and Business Policy Essay Example | Topics and Well Written Essays - 1000 words”, n.d.)
Strategic Management and Business Policy Essay Example | Topics and Well Written Essays - 1000 words. Retrieved from https://studentshare.org/miscellaneous/1518107-strategic-management-and-business-policy
(Strategic Management and Business Policy Essay Example | Topics and Well Written Essays - 1000 Words)
Strategic Management and Business Policy Essay Example | Topics and Well Written Essays - 1000 Words. https://studentshare.org/miscellaneous/1518107-strategic-management-and-business-policy.
“Strategic Management and Business Policy Essay Example | Topics and Well Written Essays - 1000 Words”, n.d. https://studentshare.org/miscellaneous/1518107-strategic-management-and-business-policy.
  • Cited: 0 times

CHECK THESE SAMPLES OF Strategic Management and Business Policy

Strategic Management and Business Policy Church & Dwight Company

expansion of the firm calls for a flatter and up-to date organizational structures, such as cellular structure to empower employees and reduce the burden on management, leading to improved performance.... management management in Church & Dwight Company portrayed a strong and directional management that had been able to steer the company to greater heights over a short time....
15 Pages (3750 words) Case Study

The Wallace Group Strategic Management

Strategic Management and Business Policy.... The major organizational changes would involve formulation of a corporate governance policy that will include a board of directors.... The Wallace Group lacks a vibrant human resource management apparatus that can articulate the changes necessitated to accommodate the growth needs and prospects, efficiently.... This re-orientation will involve a major adjustment in the personal management style of Mr....
2 Pages (500 words) Essay

Wal-Mart for a Strategic Management and Business Policy

The paper "Wal-Mart for a Strategic Management and Business Policy" discusses the Strategic Management and Business Policy of Wal-Mart and suggest the better 'business strategies' that will be good for their business and economy.... Let have a look at procedures and stages for corporate development by this business policy, here I will present these procedures in the form of steps, by following these steps they can achieve better implementation....
4 Pages (1000 words) Research Paper

Strategy Implementation in Strategic Management

The given essay "Strategy Implementation in strategic management" dwells upon the Carnival Corporation which boasts of 12 unique brands that are renowned the world over.... This has meant lost business at times, because their target market is the young travellers, and these prefer newer ships.... There is also occasion whereby virus attacks have infiltrated into the corporation's server, thereby disrupting its programs, and affecting business immensely (Wheelen & Hunger, 2008)....
4 Pages (1000 words) Essay

Competitiveness and Corporate Social Responsibility

This perspective has been clearly manifested to me in the whole year that I have been taking Strategic Management and Business Policy.... hellip; ore doing the course, I have a whole gamut of experiences that have equipped me in tackling and comprehending issues that I encountered in my profession....
25 Pages (6250 words) Essay

Government Cost Savings and Better Health Care Quality

The following paper 'Government Cost Savings and Better Health Care Quality' concerns the Strategic Management and Business Policy.... Also, the prospect of strong strategic relationships as the company grows.... Kaiser Permanente deductible HMO plan offers; a portfolio of preventive services at subsidized rates or for free, free employee tools for enhanced health....
1 Pages (250 words) Case Study

TATA Strategic Management and Business Policy

The paper "TATA Strategic Management and Business Policy" briefly analyses TATA group and its business strategies in dealing with its competitive environment and its success.... The process of developing strategy consists of analyzing the internal and external environments of the company to arrive at organizational strengths, weaknesses, opportunities, and threats (SWOT) (strategic management n.... nbsp;Innovative business strategies are important for all the business organizations to succeed in the market....
6 Pages (1500 words) Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us