Walmart’s Mission and Vision
Walmart’s retail operation was established using suitable financial methods from its inception to its worldwide position in the sector. Walmart’s mission and vision statements outline the company’s essential driving principles. In this respect, Walmart Inc.’s corporate mission is “to save people money so they can live better “(Walmart, 2022).” This mission statement is directly reflected in the strategic choices made by the firm. Similarly, Walmart Inc.’s corporate vision is to “Be THE place for clients to save money, regardless of how they prefer to shop (Team, 2022).” As such, the corporate vision represents the strategic adjustments in the marketplace and the worldwide retail sector.
Core Values, Ethics, and Social Responsibility Principles
Walmart promotes the welfare of all individuals without exception. The organization has emphasized individuals reflecting on their behavior to promote a culture of cooperation. Sam Walton founded his company on four fundamental principles: service, respect, excellence, and integrity (Walmart. Com, 2022). These values create a performance-friendly environment for Walmart’s teams. Additionally, ethical concerns are included in the company’s policies and procedures. This is achieved by regularly creating standards based on business and compliance assessments to ensure that operations are executed accordingly (Walmart. Com, 2022). Similarly, corporate social responsibility is highlighted in Walmart’s regulations and processes and the proper management of policies.
SWOT Analysis
Various factors impact the organization positively. For example, Walmart has attained economies of scale by using its robust resources efficiently and effectively. For instance, Walmart possesses adequate distribution facilities, information systems, expertise, and other talents and skills, across many global locations more efficiently and effectively (Ovidijus Jurevicius, 2021). Moreover, having a distinctive trademark, it is the most prominent corporate contractor in the world, with around 2,300,000 employees (Walmart Inc., 2022). The organization offers customers exclusive deals to help them save money, allowing it to retain customers. In 2021, Walmart’s sales will exceed those of Amazon.com and Costco, reaching $573 billion (Walmart Inc, 2022). Therefore, it has become the most popular shopping location.
Some factors of Walmart negatively influence the firm’s modus operandi. Copyright breaches perpetrated by competitors that have developed confusingly similar brands to Walmart’s (Ovidijus Jurevicius, 2021). Consequently, they often attempt to imitate Walmart’s products to attract customers. This has led to an extreme level of competitiveness. Additionally, specific government laws have a detrimental impact on Walmart. For instance, seeking corrective damages permits customers aggrieved by deceptive advertising techniques to seek corrective harms from the responsible corporation (Ovidijus Jurevicius, 2021). This sometimes happens and has resulted in substantial revenue losses.
External Factors
As a consequence of COVID-19, internet sales have increased significantly. Walmart may thus take advantage of this potential by enhancing its online sales channels. Additionally, Walmart has four healthcare facilities spread around the United States and is presently active in the healthcare sector. Walmart Insurance Services LLC has now been disclosed as the name of the insurance agency that the business has launched as part of its most recent endeavor in the healthcare sector.
External pressures are beginning to provide difficulties for Walmart to serve clients effectively. For instance, concerns with the operation of Walmart’s website. Customers have often voiced discontent with Walmart’s website, claiming faults with its operation (Ovidijus Jurevicius, 2021). Sometimes the website is slow and difficult to browse, and the contents are not presented in an organized manner. Further, small online e-commerce businesses influx have gained popularity globally. Numerous small-scale and individual Internet retailers have recently entered the industry (Ovidijus Jurevicius, 2021)… As such, these firms all provide identical products at comparable prices. It presents a possible threat to the company’s market standing in the coming years.
Walmart’s Internal Environment Impacts On its Strategy
Human capital is the organization’s employees, who constitute Walmart’s most valuable asset. Therefore, Walmart outsources competent people from prominent institutions and other disgruntled employers in other institutions. If Walmart’s employees are well-trained and passionate about their jobs, it will confront a complex challenge in achieving its commercial aim. Human resource management at Walmart is clever for the company’s benefit and the growth of its employees. However, capital resources are the funds necessary for the expansion and upkeep of a business. Walmart spends resources on tangible assets such as factories, machinery, and other manufacturing equipment and intangible assets such as marketing and employee training to guide the company’s long-term growth.
Walmart’s External Environment Impacts on Its Strategy
For ages, technology has been at the forefront of several industries. By delivering fresh food and supplies to families’ kitchens or garage refrigerators, Walmart, for instance, debuted in-home Delivery, its most recent product designed to give families convenient deliveries. As a result, it may help generate income and meet customer needs. Similarly, one of Walmart’s top priorities is customer demands. Since it is clear that Walmart’s items are made to satisfy customer needs, the corporation may succeed without sticking to this purpose. Walmart can ascertain client preferences to attain its strategic goal.
Walmart’s Strategic Objective
Walmart has been pushing the envelope to transform from a normal retailer to a tech-focused company. It has modified its goals and strategy to become a leader in high technology by investing heavily in innovation and technology (Walmart Inc., 2022). As a result, it remains at the top of the Fortune 500 amid substantial competition from firms like Amazon. Walmart has earmarked $14 billion for automation, technology, and other business sectors for the fiscal year 2022, including supply chain and customer-facing initiatives (Bamidele-Sadiq et al., 2022). In addition, the company expects to recruit more staff to satisfy consumers’ everyday demands.
Walmart’s Short- and Long-term Goals for Strategic Plan
Walmart’s long-term goals revolve around expanding economic possibilities, bolstering the company’s stability, and fortifying communities. To accomplish these objectives, the organization seeks to promote the financial freedom of women and people of color, boost the use of renewable resources, and broaden participation options in community development or empowerment projects. Walmart’s short-term objective is to decrease the prices of its great-value products by a sizeable margin while maintaining its current profit margins resulting from COVID-19 (Walmart Inc., 2022). Thus, to mitigate the repercussions of the naval pandemic, businesses must provide goods and services close to customers and achieve affordable prices in the future.
Walmart’s Data Collection and Measuring Success of Strategic Plan
Big data allows firms to have a deeper understanding of their customers and make more educated business decisions. Therefore, Walmart monitors the number of steps from ports to shops by simulating comprehensive data observations (Voigt et al., 2017). This allows the firm to track the product’s journey to the customer. Walmart utilizes feedback reviews to monitor business metrics and collect data information. The corporation understands that people click on the product’s advertising if the number of sessions grows. In addition, the regular feedback the firm gets on its social media sites contributes to data collection.
References
Bamidele-Sadiq, M., Popoola, O., Lawal, G. O., & Awodiji, T. O. (2022). The Importance of decision tree analysis on strategic management practice: Evidence from retail industries in the US. ReaseachGate. Web.
5 ways Walmart uses big data to help customers. (2017). Corporate – US. Web.
Ovidijus Jurevicius. (2021). Walmart SWOT Analysis (5 Key Strengths in 2022). Strategic Management Insight. Web.
Team, V. (2022). A wise analysis of Walmart’s mission and vision statement. Web.
Voigt, K.-I., Oana Buliga, & Michl, K. (2017). Business model pioneers. Springer Cham. Web.
Walmart. Com (2022). Code of conduct. Walmartethics.com. Web.
Walmart Inc. provides an update for the second quarter and fiscal year 2023. (2022). Corporate – US. Web.