Presented to : Sir Liaquat Presented by: Abu Zar Khan 10-NTU-5007 M.

Ali Anjum 10-NTU-5037 Ateeq-ur-Rehman 10-NTU-5017

History of Wal Mart

In 1945 Sam Walton opened the first Ben

Franklin franchise in Newport Arkansas and operated them with his wife, Helen and brother, Bud. These were small chains that were very successful. In November of 1962 Wal-Mart was opened. First distribution center opens at home office in Bentonville, Ark, also first time stock is traded publicly

 1975 Wal-Mart buys its first store, Mohr-

Value stores 1978 Acquires Hutcheson Shoe CO. Opens its first pharmacy and jewelry dept. 1979 First company to reach $ 1 billion in sales in 12 month period. Then 100 shares were worth $1,650 dollars and now the same 100 shares are worth more than $6 million dollars

 In 1987 two new concept implemented

Hypermarkets, which sell everything including food Supercenters which are scaled down supermarkets

In 1992 Sam Walton Died and in 1996 Bud

Walton died. In 1995 Wal-Marts Annual Report was dedicated to Bud In 1999 named #1 stock on the Dow

 1999 now the largest employer in the world. 2000 H. Lee Scott named president and

CEO of Wal-Mart Stores, Inc. 2002 Wal-Mart ranked #1 on the Fortune 500 list. Thanksgiving Day 2002 largest single sales day in history; 1.43 billion dollars

 2005

Walmart took a leading role in disaster relief, contributing $18 million and 2,450 truckloads of supplies to victims of hurricanes Katrina and Rita. 2006 Walmart introduced its $4 generic-drug prescription program.

 2007

Walmart.com launched Site to Store service, enabling customers to make a purchase online and pick up merchandise in stores. 2008
2009 Mike Duke became CEO.

Walmart entered Chile with the acquisition of a majority stake in D&S S.A.
.

 2010

Bharti Walmart, a joint venture, opened its first store in India. Walmart committed $2 billion through the end of 2015 to help end hunger in the United States. Walmart launched a global commitment to sustainable agriculture, aiming to strengthen local farmers and economies, while providing customers access to affordable, high-quality food

 2011

With the acquisition of MassMart in South Africa, Walmart surpassed 10,000 retail units around the world. The first Walmart Express stores were introduced in Arkansas.Walmart established @walmartlabs, a hub for developing social, mobile and global platforms.

 2012

Walmart celebrated 50 years of helping people save money so they can live better.The company employs 2.2 million associates worldwide and serves 200 million customers each week at more than 10,000 stores in 27 countries.

Vision statment
The secret of successful retailing is

to give your customers what they want. And really, if you think about it from your point of view as a customer, you want everything a wide range of good-quality merchandise, the lowest possible prices, guaranteed satisfaction with what you buy, friendly knowledgeable service, convenient hours; free parking and a pleasant shopping experience.

Misson Statment
Wal-Mart does not have a formal

mission statement. Their culture is based on three basic believes of Sam Walton 1. Respect for individual 2. Service to our customers 3. Strive for excellence If we have a formal mission statement it would be To provide quality products at an everyday low price and with extended customer service always

Proposed mission Statment

Our mission to fulfill the need of our

customer at every day low price (EDLP). Through our modernize technology we have wide range of merchandise of food, cloths, electronics, pharmacy etc. Which is available round a clock whole week. Our values revolves around our customer so that we can satisfy them in all ways. We are devoted to the growth of Wal-Mart & challenge ourselves to be better . Our employees are valuable assets of a company what we are today is because of them. It is obligatory duty of us to devote funds for the social and environmental betterment of the public.

Division of Wal Mart

Sams Club
Supercenters Neighborhood markets International

Sam's Club
Membership-only, cash-and-carry operations. Financial service credit card program (Discover Card)

available at all clubs. Annual membership fee is $35; the Elite Membership is $100.
Elite membership has additional benefits like automotive

service contracts, roadside assistance, home improvement, auto brokering and pharmacy discounts.

Bulk displays and name brand merchandise At the end of 2009 Wal Mart have 602 sams club in

operation.

Supercenters
It combine groceries with general merchandise, giving

customer one stop shopping. Wal Mart likes to locate supercenters near the strongest food retailers so their facilities will either get better or be run out of town The company has gained market share more quickly then planned. The average size of supercenters is 186000 sq feet. They usually employ between 200 and 550 associates, contingent on store size and consumer needs.

Neighborhood Markets
First began in 1998
There markets are 42000 sq feet and usually employ 80 to 100 associates.

Located in market with Wal-Mart Supercenters

Offers customer groceries, pharmaceuticals & general merchandise.

Provides 28,000 items to customers.

In 2009 there were 153 neighborhood markets.

International
There are 318 Wal-Mart brands in Canada, 1197 in

Mexico and 56 in Puerto Rico.

Wal-Mart expanded so that customers everywhere would associate its name with low cost, best value, greatest selection of quality merchandise and highest standards of customer service. Wal-Mart focused on Global Positioning.

Boston consulting group(BCG)Matrix

Relative market share position High 1.0 High +20 Sales growth rate Medium 0 low -20 Medium .50 Neighborhood low 0.0

Supercenters

Sams International

Strategy farmolation analysis frame work

Input stage

Process

Matching stage

Decision stage

Stage One Input stage

EFE

IFE

CPM

External Factor Evaluation (EFE) opportunities

Use the online store Availability of vast merchandising items New line of organic products Take over, merge with or form alliances with global retailers

focusing on specific market such as Europe and China Target the untapped market Customer loyalty Best availability of Logistics

External Factor Evaluation (EFE)

Threats
Being a leader it faces a lot of

competition Effect on Local retailer Vanishing monopoly

EFE Matrix
Opportunities Online store Merchandising items Alliances with farms Target the untapped market Customer loyalty Organic Products Best availability of Logistics Threats Face competition Effect on Local retailer Vanishing monopoly Total Weight 0.12 0.10 0.10 0.09 0.12 0.09 0.11 Weight 0.09 0.10 0.09 1.00 Rating 3 4 3 2 3 3 4 Rating 4 3 2 Weighted Score 0.36 0.40 0.30 0.18 0.36 0.27 0.44 Weighted Score 0.36 0.30 0.18 3.15

Internal Factor Evaluation (IFE) Strength

Stores in all 50 states New concepts:

Hypermarkets, supermarkets Wide variety of merchandise Nationally advertised merchandise Limited lines of merchandise made in USA Point-of-sale bar code scanning Great employee benefits

Internal Factor Evaluation (IFE) Weaknesses

No formal mission statement Management resisted putting

women on board of directors Hiring illegal minorities to clean Growth for employees only in division

IFE Matrix
Strength Stores in States Hypermarkets Variety of merchandise Nationally Advertise Barcode system Great Employee benefit Weakness No mission statement Appoint woman not allowed Weight 0.09 0.12 0.10 0.09 0.12 0.10 Weight 0.10 0.09 Rating 3 4 3 3 4 3 Rating 2 1 Weighted Score 0.18 0.48 0.30 0.27 0.48 0.30 Weighted Score 0.20 0.09

Hiring illegal minorities

Growth of employees only in division Total

0.10
0.09 1.00

1
2

0.10
0.18 2.58

Competitive Profile Matrix

Competitive Profile Matrix

Wal-Mar Weight Rating Score Target Rating Score Kmart Rating Score

Market Share
Cus.Loyalty Fin. Position Online System

0.11
0.12 0.12 0.08

4
4 3 3

0.44
0.48 0.35 0.24

3
3 2 2

0.33
0.36 0.24 0.16

2
2 3 2

0.22
0.24 0.36 0.16

Global Expn.
Advertising Cus. Service Tech. Adoption

0.09
0.07 0.08 0.07

3
3 4 2

0.27
0.21 0.32 0.14

2
3 3 2

0.18
.21 0.24 0.14

3
2 2 3

0.27
0.14 0.16 0.21

Management
Logistics Distribution Ch. Emp. Benefit

0.06
0.06 0.08 0.06

2
3 3 3

0.12
0.18 0.24 0.18

2
2 2 3

0.12
0.12 0.16 0.18

2
2 2 2

0.12
0.12 0.16 0.12

Total

1.00

3.17

2.44

2.28

Findings of Input Stage

EFE
IFE

3.15 shows that our organizational external response is outstanding. 2.58 shows that our organizational internal response is Good. 3.17 shows that our competitive matrix is more stronger than our competitors.

CPM

Stage Two Matching Stage

SWOT Matrix

SPACE Matrix

IE Matrix

Grand Strategy Matrix

SWOT MATRIX
Opportunities
1. Use the online store 2. Availability of vast merchandising items 3. New line of organic products 4. Take over, merge with or form alliances with global retailers focusing on specific market such as Europe and China 5. Target the untapped market 6. Customer loyalty 7. Best availability of Logistics

Strengths

1. Stores in all 50 states 2. New concepts (Hypermarkets, supermarkets) 3. Wide variety of merchandise 4. Nationally advertised merchandise 5. Limited lines of merchandise made in USA 6. Point-of-sale bar code scanning 7. Great employee benefits

Weakness

1. No formal mission statement 2. Management resisted putting women on board of directors 3. Hiring illegal minorities to clean 4. Growth for employees only in division

SO Strategy S1O6 S3O5

WO Strategy W4O5 W1O4

Threats
1. Being a leader it faces a lot of competition 2. Effect on Local retailer 3. Vanishing monopoly

ST Strategy S3T1 S1S3 S5T2

WT Strategy W1T1

Space matrix
Financial strength (FS) Ratings(+1 Worst , +6 Best)

Return on equity
Revenue increase Liquidity Earning per share

5
4 4 3

Cash flows
Leverage Inventory Turn over Total

4
4 6 30

Space matrix
Industry strength (IS)
Growth potential

Ratings(+1 Worst , +6 Best)

5

Financial stability
Technical know how

4
3

Resources utilizations
Producing capability utilizations Profit potential Ease to enter in to market Total

4
5 5 3 29

Space matrix
Competitive Advantage (CA) Market share Ratings (-6 Worst , -1 Best) -2

Product quality
Customer loyalty Brand image Customer service Product life cycle Total

-1
-2 -1 -2 -4 -12

Space matrix
Environmental Stability (ES) Ratings (-6 Worst , -1 Best)

Competition pressure Competing product price Rate of inflation

Demand variability Technology changes Price elasticity of demand Total

-2 -3 -2
-3 -1 -2 -13

Space matrix
FS average (30/7)=4.2

ES average (-13/6)=-2.1
X-axis CA+IS

IS average(29/7)=4.1 CA average(-12/6)=-2

= -2+4.1 = 1.9 Y-axis FS+ES = 4.2+(-2.1) = 2.1

FS
+6

Space matrix
Conservative

+5 +4

+3
+2 +1

Aggressive

CA

-6 -5 -4 -3 -2 -1

-1 0 + 1 + 2 +3 + 4 + 5 + 6 -2 -3

IS

Defensive

-4
-5 -6

Competitive

ES

Internal-External Matrix (IE)

Strong 3.0 to 4.0 (4) High Low Medium 3.0 to 4.0 2.0 to 2.99 1.0 to 1.99 (4) (3) (1) (2) (EFE Score 3.15) Average 2.0 to 2.99 Weak 1.0 to 1.99

(3)

(2) (IFE Score 2.58)

II
Wal-Mart

(1)

III

IV

VI

VII

VIII

IX

Grand Strategy Matrix

Rapid Market Growth

ii)

iv)

Market development Market penetration iii) Product development Forward, Backward & Horizontal integration

i)

Quadrant II Week Competitive position Quadrant III

Quadrant I Strong Competitive position

Quadrant IV

Slow Market Growth

Stage Three The decision stage

Quantitative Strategic Planning Matrix (QSPM)

Cost Effective Strategy

Promotion Strategy

Quantitative Strategic Planning Matrix

Promotion Strategy Strength
Stores in States Hypermarkets Variety of merchandise Nationally Advertise Barcode system Great Employee benefit

Cost effective Strategy TAS AS TAS

Weight
0.09 0.12 0.10 0.09 0.12 0.10

AS

Weakness
No mission statement Appoint woman not allowed Hiring illegal minorities

Weight
0.10 0.09 0.10

AS

TAS

AS

TAS

Growth of employees only in division

0.09

Total

1.00

Quantitative Strategic planning Matrix

Promotion Strategy Opportunity
Stores in State Hypermarkets Variety of merchandise Nationally Advertise Barcode system Great Employee benefit

Cost effective Strategy TAS AS TAS

Weight 0.09 0.12 0.10 0.09 0.12 0.10

AS

Threat
Face competition Effect on Local retailer Vanishing monopoly

Weight
0.09 0.10 0.09

AS

TAS

AS

TAS

Total