Walmart Analysis - Vision and Mission Statement

Wal-Mart Analysis

Introduction

Wal-Mart has grown into one of the largest discount retail stores in the world and has proven that the type of operation that they have is successful and effective. Although they are the industry leader, in the recent years their sales growth rate has not experienced such of an increase. The decrease of the slowing growth rate from their previous double-digit growth has begun to develop problems and serious concern for the company. They are now faced with the attempt to understand the symptoms and causes of the problem and how to regain their growth strength.

Vision and Mission Statement

Vision statement. A vision is a statement about what your organization wants to become. A vision must be based in reality to be meaningful for an organization. The vision must be believable to be relevant. It resonates with all members of the organization and helps them feel proud, excited, motivated, and part of something much bigger than themselves. A vision should stretch the organization's capabilities and image of itself. Wal-marts vision is to become the worldwide leader in retailing. Wal-Mart has grown into one of the largest discount retail stores in the world and has proven that the type of operation that they have is successful and effective.

Mission statement. Mission or Purpose is a precise description of what an organization does. The mission should describe the business the organization is in. The mission is a definition of why the organization exists currently. Wal-Mart's mission statement is to help people save money so they can live better, and give ordinary people the chance to buy the same thing as rich people. This mission is accomplished by providing the largest assortment of merchandise at the lowest cost and with the most convenience.

External Assessment

As Wal-Mart grew rapidly becoming one of the world largest corporations, there were concerns about the effect of its supercenters on neighborhood in which it operates. This brought a need for an external audit. According to Patel (2006), a study made analyzed two different Wal-Marts, the first that was open for a short period was taking control of the local market by dropping the price to a very low profit margin In the second store, they completely took control of the local economy, making an economic low spot having Wal-Mart in the middle and the rest of the stores with prices 17% higher. These are the type examples that have given the business a bad reputation and the view of mistrust. This affects the business resources and finances that can cause to drop the profits margin. This is why an external audit must be done locally and internationally, and should include economic, political, social, culture, and demographic trends, technology advancements, global market, and the Internet business, which is constantly growing.

Economic and political forces. Economic factors to be considered during the audit are interest rates, taxation changes, economic growth, inflation and exchange rates. For example, higher interest rates may deter investment because it costs more to borrow. A strong currency may make exporting more difficult because it may raise the price in terms of foreign currency. Inflation may provoke higher wage demands from employees and raise costs. Higher national income growth may boost demand for a firm's products. Political factors refer to government policy such as the degree of intervention in the economy. What goods and services does a government want to provide? What are its priorities in terms of business support? Political decisions can impact on many vital areas for business such as the education of the workforce, the health of the nation and the quality of the infrastructure of the economy such as the road and rail system.

Social and culture forces. Wal-Mart is constantly bringing new products to consumers giving them what they want at lower prices than competitors. As a part of innovation Wal-Mart has to constantly adapt to the changes and demands of the consumers. Wal-Mart's management takes the new innovated ideas from its employees and put them in practice stimulating them to bring even more ideas that help them keep ahead of their competitors. Wal-Mart is constantly bringing new products to consumers giving them what they want at lower prices than competitors. As a part of innovation Wal-Mart has to constantly adapt to the changes and demands of the consumers (Deango, 2001). With being a well known corporation, Wal-Mart managers have to consider social, culture, and demographics that can affect planning, organizing, leading and controlling. "First, Sam Walton never lost sight of the importance of maintaining a strong corporate culture based on three core principles: (1) service to the customer; (2) striving for excellence; and (3) respect for the individual" (Mars, 2004). Presently, Wal-Mart culture is still based on the same principles. Wal-Mart managers worry about the ethnical diversity when it comes to planning, organizing, leading and controlling to continue to stay profitable. Changes in social trends can impact on the demand for products.

Globalization and technology forces. Globalization, Technology, and innovation all are reasons why management is constantly demanding change in order to keep up with the times. According to Britt (2010), globalization brings opportunity to a broader market, but at the same time, promotes more competitors that will require a superior level of competence for any organization that will take advantage of it. With globalization Wal-Mart has been able to work in many foreign territories and increase its profits. Technology is constantly changing and staying ahead of things is becoming harder to do with each new day. Wal-Mart is successfully keeping up or possibly passing other competitors with the decisions they make on how to keep up. In 2001 Wal-Mart decided to renovate its technology by changing all of its mainframes and storage products to IBM. In doing so it is keeping its own technology ahead of the curve. It is decisions like choosing to change over all of the older technology to newer technology that allows Wal-Mart to keep up with all of the consumer demands. There are a lot more people shopping on line which means it is necessary for them to the necessary technology that will allow them to keep up or stay ahead.

Internal Assessment

To gain a competitive advantage in today's business environment, companies need to evaluate themselves internally more than just comparing themselves to competitors, or externally. Internally auditing the company, Wal-Mart tends to still prove their strength. One of their largest strengths is the distribution